Advance Residence Investment (TYO:3269) said it entered into an interest rate swap agreement with Mizuho Bank to hedge the risk of interest rate fluctuations on its planned 2.3 billion yen floating-rate long-term loan scheduled to be borrowed on July 1.
The Japan-based real estate investment trust said that the loan runs from July 1, 2026, to June 29, 2029, and comes at a fixed rate of 1.90650% and will receive one-month yen TIBOR, according to a Monday filing on the Tokyo Stock Exchange.
The company said that the transaction will effectively fix the interest rate on the three-year loan at 2.05650%.