April 9, 2021
For Immediate Release
REIT Issuer:
Daiwa House REIT Investment Corporation
2-4-8, Nagatacho, Chiyoda-ku, Tokyo
Toshiharu Asada, Executive Director
(TSE Code: 8984)
Asset Manager:
Daiwa House Asset Management Co., Ltd.
Koichi Tsuchida, President and CEO
Inquiries:
Yoshikazu Tamura, General Manager,
Fund Management Department, Daiwa House REIT Division
TEL: +81-3-3595-1265
Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds)
Daiwa House REIT Investment Corporation ("DHR") hereby announces that it decided today to issue investment corporation bonds (the "Green Bonds") based on the comprehensive resolution at the board of directors' meeting held on March 26, 2021.
1. Overview of the investment corporation bonds
(1) | Name | Daiwa House REIT Investment Corporation 14th Unsecured Investment |
Corporation Bonds (with pari passu conditions among specified investment | ||
corporation bonds) (green bonds) (Nickname: DHR Green Bonds) | ||
(2) | Total issue amount | 4,000 million yen |
(3) | Form of bond | No bond certificates for the Green Bonds will be issued subject to the provisions of |
certificate | the Act on Book-Entry Transfer of Company Bonds, Shares, etc. | |
(4) | Issue price | 100 yen per value of 100 yen of each bond |
(5) | Redemption price | 100 yen per value of 100 yen of each bond |
(6) | Interest rate | 0.500% per annum |
(7) | Denomination of | 100 million yen |
each bond | ||
(8) | Offering method | Public offering |
(9) | Subscription period | April 9, 2021 (Friday) |
(10) | Payment date | April 15, 2021 (Thursday) |
(11) | Collateral and | No collateral or guarantee is provided for the Green Bonds, and no asset is reserved |
guarantee | as security specifically for the Green Bonds. | |
(12) | Redemption method | The total issue amount will be redeemed on April 15, 2031. |
and date | The Green Bonds may be retired by purchase at any time after the payment date | |
unless otherwise stipulated by the depository. | ||
(13) | Interest payment | April 15 and October 15 every year |
date | (In case such date is a bank holiday, the immediately preceding bank business day | |
will be the date.) | ||
(14) | Financial covenants | Negative pledge clause is applicable. |
(15) | Credit rating | AA (Japan Credit Rating Agency, Ltd.) |
(16) | Fiscal, issuing and | Sumitomo Mitsui Trust Bank, Limited |
paying agent | ||
(17) | Underwriters | SMBC Nikko Securities Inc. |
Mizuho Securities Co., Ltd. | ||
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. |
2. Reason for the issuance
DHR decided to issue the Green Bonds with an aim to expand the investor base as well as ensure stable fundraising methods along with further promoting ESG initiatives.
- 1 -
The Green Bonds are to be issued as green bonds based on the mechanism of the issuance of the green bonds (green finance framework) formulated by DHR as described in the press release "Notice Concerning Submission of Revised Shelf Registration Statement for Issuance of Green Bonds" on May 12, 2020.
As a third-party assessment on the Green Bonds, DHR received an evaluation rating of "Green 1", the highest rating in the JCR Green Bond Evaluation, from the Japan Credit Rating Agency, Ltd. ("JCR").
3. Amount of funds to be procured, use of proceeds and scheduled outlay period
-
Amount of funds to be procured (approximate net proceeds)
3,974 million yen - Use of proceeds and scheduled outlay period
DHR will use the proceeds on April 30, 2021 to refinance part of the long-term loans of 9,500 million yen scheduled for repayment on April 30, 2021. The long-term loans were originally borrowed to fund acquisition of assets including D Project Kakegawa, DPL Misato, D Project Urayasu III, and D Project Tomisato, which are eligible green assets.
4. Investors who declared investment in the Green Bonds
Listed below in alphabetical order are investors to date who declared their intention of investment in the Green Bonds.
･Aoi Mori Shinkin Bank | ･SUWA SHINKIN BANK |
･GUNMAMIRAI Shinkumi Bank | ･Takaoka Shinkin Bank |
･HYOGO SHINKIN BANK | ･The 77 Bank, Ltd. |
･Iizuka Shinkin Bank | ･THE AWAJI SHINKIN BANK |
･KANONJI SHINKIN BANK | ･THE FUJI SHINKIN BANK |
･Mutual Aid Foundation for Japan Postal Group | ･The SAGAMI Shinkin Bank |
･Nagano Shinkin Bank | ･The Tsuruga Shinkin Bank |
･Sawayaka Shinkin Bank | ･TOKUSHIMA SHINKIN BANK |
･SHIZUOKA YAIZU SHINKIN BANK |
5. Status of interest-bearing debt after the issuance of the Green Bonds
(Unit: | million yen) | ||||||
Before | After | Increase / | |||||
(as of April 9, 2021) | (as of April 15, 2021) | Decrease | |||||
Short-term loans | － | － | － | ||||
Current portion of long-term loans | 26,858 | 26,858 | － | ||||
Long-term loans | 321,700 | 321,700 | － | ||||
Total loans | 348,558 | 348,558 | － | ||||
Current portion of investment | 4,000 | 4,000 | － | ||||
corporation bonds | |||||||
Investment corporation bonds | 26,000 | 30,000 | 4,000 | ||||
due after one year | |||||||
Total investment corporation bonds | 30,000 | 34,000 | 4,000 | ||||
Total interest-bearing debt | 378,558 | 382,558 | 4,000 | ||||
6. | Other |
For the risks concerning issuance and redemption, etc. of the Green Bonds, there are no changes from the Japanese language securities report submitted on November 27, 2020.
- DHR's website:https://www.daiwahouse-reit.co.jp/en/
- 2 -