Advance Residence Investment: Notice regarding the issuance of investment company bonds (Green Bond)

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October 19, 2021

For immediate release

Anticipated investment in the residence

company

Securities Code??3269

1-105Kanda-Jinbocho, Chiyoda-ku, Tokyo

Wataru Higuchi, Executive Director

Asset management company:

AD Investment Management Co., Ltd.

Takeshi Takano, President

Surveys:

Isao Kudo, director

PHONE. + 81-3-3518-0480

Notice regarding the issuance of investment company bonds (Green bond)

Advance Residence Investment Corporation (ADR) today announced its decision to issue Green Bond as follows, on the basis of the general resolution on the issuance of ADR bonds adopted at the Board of Directors meeting of August 26, 2021.

1. Conditions of investment company bonds

  1. Name of investment company bonds

ADR Unsecured Bond # 34, Green Bond

(With Pari Passu clause among the obligations of specified investment companies)

(Hereinafter referred to as “Bond # 34”).

ADR Unsecured Bond # 35, Green Bond

(With Pari Passu clause among the obligations of specified investment companies)

(Hereinafter referred to as “Bond # 35”).

  1. Total amount of bond issue

Link # 34

1,000 million yen

Link # 35

1,600 million yen

Total

2,600 million yen

  1. Form of investment company bond certificates

Under the Deed of registration in account of bonds, shares, etc., there will be no certificate for the bond.

  1. Issue price

100 yen per 100 yen face value

  1. Redemption price

100 yen per 100 yen face value

  1. Coupon rate

Link # 34

0.400%

Link # 35

0.660%

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  1. Denomination 100 million yen
  2. Offer Method
    Public offer
  3. Offer period

October 19, 2021 (Tuesday)

(10) Date of issue

October 25, 2021 (Monday)

(11) Safety / Guarantee

No guarantee or guarantee is on the surety and no assets are reserved as security for the surety.

  1. Method of reimbursement and date of reimbursement

Bond # 34 The full principal will be repaid on October 24, 2031.

Bond # 35 The full principal will be repaid on October 24, 2036.

Bonds can be bought and canceled at any time from the date following the date of issue, unless otherwise agreed by the depositary.

  1. Coupon payment dates

April 25 and October 25 of each year (the first payment date is April 25, 2022)

  1. Financial commitments Contains a negative pledge.
  2. Acquired ratings JCR AA rating
  3. Tax Agent, Issuer and Payor Sumitomo Mitsui Trust Bank, Limited
  4. Subscribers
    Mizuho Securities Co., Ltd. SMBC Nikko Securities Inc.

2. Purpose of the program

ADR believes that issuing green bonds will improve our funding base by broadening our universe of investors, especially for investors interested in ESG investing. It is with this conviction that ADR has today decided to issue the first green bond among residential J-RIETs. The bonds of the investment company will be issued as green bonds in accordance with the green funding framework formulated by the investment company. Regarding the eligibility of the green finance framework,

ADR received the highest rating “Green 1 (F)” in the JCR Green Finance Framework assessment by the Japan Credit Rating Agency, Ltd., an institution that assesses green finance.

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3. Amount, use and expected date of expenditure of the product

  1. Estimated net proceeds amount

2,577 million yen

  1. Specific use and planned expenditure Date of product
    The proceeds will be used to partially repay a loan maturing October 29, 2021. The existing loan was used to repay a loan originally used in the acquisition of Pacific Royal Court Minato Mirai Ocean Tower. As of March 4, 2019, Pacific Royal Court Minato Mirai Ocean Tower has been awarded 4 stars under DBJ Green Building certification and meets the eligibility criteria as qualifying green assets.
  2. Investors who have declared their intention to invest in bonds of investment companies
    Below, in alphabetical order, are the investors who have declared their intention to invest in the Bond Investment Corporation and have agreed to the disclosure of their names.

??ASAHIKAWA SHINKIN BANK

??DaitokyoShinkumi Credit Union

??GUNMAMIRAI Shinkumi Bank.

??Nishihyogo Shinkin Bank

??Shinkin Bank Shizuoka Yaizu

??SUWA SHINKIN BANK

??THE AWAJI SHINKIN BANK

??Dai-ichi Life Insurance Company Limited

??The Shinkin SAGAMI bank

??Yamanashi Chuo Bank, Ltd.

4. Other

There are no significant changes in the “Investment risk” indicated in the securities report filed on April 28, 2021 regarding the risk of redemption of investment company bonds.

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Reference material: Debt financing balance (as of October 29, 2021)

(in millions of yen)

Before refinancing (Note 1)

After refinancing (Note 2)

Increase decrease)

Short term loan (Note 3)

2,700

2,700

Long term loans (Note 3)

186 009

183,409

(2,600)

Total loans

188,709

186 009

(2,600)

Corporate investment bonds

34,000

36,600

2,600

Total interest-bearing debt

222,709

222,709

(Note 1)

As of October 24, 2021.

(Note 2)

The report assumes that the following actions will be carried out.

  • Of the 6,100 million yen loan that will become due on October 29, 2021, 2,600 million yen will be repaid with the proceeds and available cash, and 2,000 million yen will be refinanced with long-term loan of the same amount on the repayment date as announced in the “Notice Regarding Debt Financing and Loan Repayment” of March 25, 2021. In addition, the remaining 1,500 million yen will be refinanced with the same amount – term loan on the repayment date.
  • There will be no increase or decrease in loans and bonds of investment companies other than the above.

(Note 3) Short-term loans are loans with repayment dates less than one year from the date of drawdown and long-term loans are loans with repayment dates more than one year away. .

About Advance Residence Investment Corporation

Advance Residence Investment Corporation is the largest residential J-REIT, investing in over 270 rental apartments located primarily in central Tokyo and other major cities in Japan (AUM over 460 billion yen). ADR can be expected to have a stable long-term dividend and can be seen as a defensive J-REIT, thanks to the stable income from residential assets and with the largest reserve of dividends among the J-

REIT. ADR website: https://www.adr-reit.com/fr/

[Provisional Translation Only]

The English translation of the original Japanese document is provided for informational purposes only.

In the event of any discrepancies between this translation and the Japanese original, the latter shall prevail.

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Disclaimer

Advance Residence Investment Corporation published this content on October 19, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 19, 2021 07:01:02 AM UTC.


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