August 7, 2020
To All Concerned Parties
Name of REIT Issuer:
Nippon Building Fund, Inc.
Koichi Nishiyama, Executive Director
(TSE Code : 8951)
Contact:
Asset Management Company
Nippon Building Fund Management, Ltd.
Yoshiyuki Tanabe, President and CEO
Person to Contact:
Yasushi Yamashita, General Manager
(TEL. +81-3-3516-3370)
Notice Concerning Issuance of Investment Corporation Bonds
Nippon Building Fund, Inc. ("NBF") hereby provides notice of its decision on August 7, 2020 to issue investment corporation bonds as follows:
Description
1. Summary of Investment Corporation Bonds
- Name of Investment Corporation Bonds
Nippon Building Fund, Inc. No.19 Unsecured Investment Corporation Bonds (hereinafter referred to as "No.19 NBF Bonds")
(with special pari passu conditions among specified NBF Bonds)
- Total Amount of Bonds to be Issued 15 billion yen
-
Form of Certificates of No.19 NBF Bonds to be Issued
Under the applicable Act on Book-Entry Transfer of Corporate Bonds and Shares, no bond certificates for No.19 NBF Bonds will be issued. - Issue Price
100 yen per 100 yen of each Bond - Redemption Price
100 yen per 100 yen of each Bond - Interest Rate
0.180% per annum - Denomination Price 100 million yen
- Method of Offering Public offering
- Date of Subscription August 7, 2020
- Date of Payment August 14, 2020
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Collateral
No secured mortgage or guarantee is applicable to, and no assets are specifically reserved as collateral for No.19 NBF Bonds. - 1 -
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Method and Date of Redemption
The total amount of No.19 NBF Bonds will be redeemed on August 14, 2025 (or the immediately preceding business day if such day is a bank holiday in Japan). - No.19 NBF Bonds may be repurchased and cancelled at any time after the date of payment unless specified to the contrary by the relevant transfer agent.
- Date of Interest Payment
February 14 and August 14 of each year (or the immediately preceding business day if such day is a bank holiday in Japan).
-
Financial Covenant
"Negative pledge clause" is applicable. - Ratings
AA+ (Japan Credit Rating Agency, Ltd.) - Book-entrytransfer institution
Japan Securities Depository Center, Incorporated - Fiscal, Issuing and Paying Agent Sumitomo Mitsui Trust Bank, Limited
-
Underwriter
SMBC Nikko Securities Inc.
2. Reason for the Issuance
To mitigate risks of interest-rate increase and refinancing by increasing the ratio of long-term fixed interest rates for interest-bearing debt through the issuance of No.19 NBF Bonds.
3. Amount, Use and Expected Date of Expenditure of Proceeds
-
Amount of capital to be procured (estimated net proceeds)
14,930 million yen - Specific use and expected date of expenditure of proceeds
Procured funds will be used to repay interest-bearing debt, as well as for our working capital. The remaining amount, if any, will be kept at hand, and may be used in the future as part of the funding to acquire Specified Assets ("tokutei shisan", as stipulated in Article 2 (1) of the Act on
Investment Trusts and Investment Corporations).
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4. Status of Borrowings etc. after Issuance of No.19 NBF Bonds
(Unit: million yen) | |||
Before | After | Increase / | |
Financing | Financing | Decrease | |
Short-term borrowings | 0 | 0 | 0 |
Long-term borrowings | 28,000 | 28,000 | 0 |
(Floating interest rate) | |||
Long-term borrowings | 365,500 | 365,500 | 0 |
(Fixed interest rate) | |||
Bonds | 37,000 | 52,000 | 15,000 |
Total | 430,500 | 445,500 | 15,000 |
5. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information
There is no change to the content of "Investment Risks" of the Securities Report submitted on March 30, 2020 with respect to the risks involved in repayment etc. due to the current Issuance of No. 19 NBF Bonds.
End
This English language notice is a translation of the Japanese language notice dated August 7, 2020 and was prepared solely for the convenience of, and reference by, overseas investors. Neither NBF nor Nippon Building Fund Management, Ltd. makes any warranties as to its accuracy or completeness.
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Disclaimer
Nippon Building Fund Inc. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 06:33:19 UTC