TOKYO, Mar 19 (Pulse News Wire) – Advance Residence Investment Corporation (3269.T) announced it has entered into an interest rate swap agreement to hedge against fluctuation risks associated with a long-term loan scheduled for March 24, 2026. Under the agreement, which begins on March 24, 2026, and ends on September 30, 2033, the company will pay a fixed rate of 500 basis points while receiving a variable rate based on the Tokyo Interbank Offered Rate (TIBOR).
The contract covers a principal amount of ¥1.489 billion and spans a seven-and-a-half-year term. Initial payment dates commence on March 24, 2026, followed by monthly payments on the last day of each month and upon maturity dates, adjusted for non-business days.
This swap arrangement effectively locks in the interest rate for the ¥1.489 billion loan at approximately 7.5%, mitigating potential fluctuations over the loan's duration. The swap agreement was finalized, aligning with the company’s strategy to manage financial risk and ensure stable returns for investors.
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