Hankyu Hanshin REIT (TYO:8977) will issue two series of investment corporation bonds totalling 3.3 billion yen through a private placement to qualified institutional investors.
The issuance comprises a 2 billion yen, five-year green bond with a variable interest rate and a 1.3 billion yen, six-year conventional bond with a fixed interest rate of 2.3275% per annum, according to its bourse filing on Monday.
The net proceeds from the bond issue will be used to make an early repayment of 3.3 billion in existing bank borrowings from the Development Bank of Japan due in March and June 2027.
The green bond issuance aligned with the REIT's sustainability framework, which has received the highest Green 1 evaluation from Japan Credit Rating Agency.
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