Comforia Residential REIT (TYO:3282) has entered into an interest rate swap agreement with Mizuho Bank to hedge its 1.2 billion yen loan, according to its Tokyo bourse filing on Thursday.
The seven-year agreement fixes the borrowing cost at a rate of 2.176%, converting the loan from a variable rate tied to the 1-month Japanese Yen TIBOR, effective Dec. 22.
Following this transaction, the REIT's fixed-interest debt ratio will stand at 81.8%, with variable-interest debt making up the remaining 18.2%.
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