Kenedix Retail REIT: Notice Regarding Change in Base Interest Rate for Loan Agreement and Interest Rate Swap Agreement Due to LIBOR Shutdown Announcement


Translation from the Japanese original

23 December 2021

To all parties involved

REIT Issuer:

Kenedix Retail REIT Corporation

Representative: Moyuru Watanabe, Executive Director

(Securities code: 3453)

Asset manager:

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President and CEO

Contact:Koichiro Nobata, Head of Strategic Planning,

Retail REIT Department

PHONE :+ 81-3-5157-6013

Notice regarding the change in the base interest rate for the loan agreement and

Interest Rate Swap Agreement Due to LIBOR Cessation Announcement

Kenedix Retail REIT Corporation (“KRR”) today announced its decision to modify the base interest rate on loan agreements (borrowings) and interest rate swaps (the “Modification”), as set out herein. below due to the end of the publication of the London Interbank Offered Rate (LIBOR) at the end of December 2021.

1. Details of the change

  1. Loan contract (loans)


Interest rate




Above: before the change


Lower: after the change

Basic rate

(ICE Benchmark Administration Limited (“IBA”) JPY LIBOR 6 months)

Japanese life

+ 0.70000%




Basic rate


(Overnight risk-free benchmark rate compounded in arrears

(TONA / Observation lag) (Note 1) + Adjusted reference rate (Note 2))

+ 0.70000%

(2) Interest rate swap contract




Nomura Securities Co., Ltd.

Notional amount (million yen)


Fixed interest rate for




Floating interest rate for

Base rate (IBA JPY LIBOR 6 months)



Above: before the change

TONA / Observation lag + Adjusted reference rate (Note 3)

Lower: after the change

Start date

September 28, 2018

Termination date

March 31, 2025

(Note 1) The benchmark risk-free overnight compounded arrears rate (TONA / Observation Shift) is derived from an unsecured overnight call rate for the Japanese yen (TONA) published by the Bank of Japan or the successors of the administration. The rate is a daily TONA compounded during the observation period (while applying single rates of TONA from the preceding working days to the holidays in the period), which is divided by the number of days in the period, multiplied by 360 and rounded to the fifth decimal place. The above working days refer to the days when the Tokyo Unsecured Silver Market is open. The observation period above means that a period begins 10 business days before the first date of an applicable interest period and ends one day before 10 business days before the last date of the interest period.


Translation from the Japanese original

(Note 2) The adjusted reference rate is a spread adjustment, 0.05809% per annum, applied in order to minimize the transfer of value between the parties concerned when the base interest rates change. The figure is the corresponding spread adjustment for each period published by Bloomberg Index Services Limited on March 5, 2021, and is recommended by the Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks, whose secretariat is the Bank of Japan.

(Note 3) The Series 24-B interest rate has been essentially fixed at 0.91300% by the interest rate swap agreement, and the essentially fixed interest rate will not be changed after the change.

2. Other questions

The risks associated with the early repayment of borrowed funds remain unchanged from those listed in KRR’s securities report submitted on December 23, 2021.

KRR website address:

This notice is the English translation of the Japanese announcement of December 23, 2021. However, no assurance or warranty is given as to the completeness or accuracy of this English translation.



Comments are closed.