Advance Residence Investment (TYO:3269) decided to enter into an interest rate swap agreement to protect against the risk of interest rate fluctuations related to a 1.56 billion floating-rate long-term loan scheduled to be borrowed on May 29.
The swap, executed with MUFG Bank on May 27, covers a notional principal of 1.56 billion from May 29, 2026, to April 28, 2033.
Under the agreement, the REIT will pay a fixed rate of 2.69875% and receive the one-month yen TIBOR, effectively fixing the interest rate on the loan at 2.85875%.
The move locks in borrowing costs for the 6.9-year tenor and ensures stability in interest payments.