Nippon Prologis REIT Inc. entered into a loan agreement to borrow a total of ¥11.80 billion from a syndicate of lenders arranged by Sumitomo Mitsui Banking Corp. and The Bank of Tokyo-Mitsubishi UFJ Ltd.
The Japanese industrial real estate investment trust also signed an interest rate swap agreement for the loan, with Morgan Stanley MUFG Securities Co. Ltd. acting as the counterparty at a fixed interest rate of 0.3198%.
The loan, to be drawn March 13, carries an interest rate of Japanese Bankers Association one-month Japanese yen Tokyo Interbank Offered Rate plus 0.30% and will be due 10 years from the borrowing date.
Lenders include Sumitomo Mitsui Trust Bank Ltd., Mizuho Bank Ltd., Development Bank of Japan Inc. and Resona Bank Ltd., in addition to the arrangers.
The amount borrowed will be used to repay part of bridge loans of ¥22.54 billion to Sumitomo Mitsui Banking Corp. and ¥9.66 billion to The Bank of Tokyo-Mitsubishi UFJ Ltd., as well as related expenses. The loans were drawn March 1.
As of March 8, US$1 was equivalent to ¥106.12.
