The manager of Parkway Life REIT (PLife REIT) has priced JPY3.3 billion ($41.3 million) worth of six-year senior unsecured fixed rate notes due 2027.

The notes, which are denominated in JPY, will carry a coupon of 0.51% per annum, and will be drawn down under Parkway Life MTN’s $500 million Multicurrency Debt Issuance Programme.

The issue of the notes is expected to be completed on March 29.

The proceeds from the issue of the notes will go to repurchasing an earlier March 29, 2016 issuance of JPY3.3 billion 0.58% senior unsecured notes due 2022 at a price of 100% of their principal amount without penalty.


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The new notes are priced lower than the existing 0.58% notes, resulting in further interest cost savings for the next six years.

“While many countries are trying to rein in the spread of COVID-19 and speed up the rate of vaccination, the current economic outlook remains uncertain and it is crucial for PLife REIT to mitigate any potential refinancing risk by pre-emptively terming out maturing debts,” explains Yong Yean Chau, CEO of the manager.

“To that end, we have successfully termed out the existing Notes Due 2022 via the Notes Issue. The successful pricing of new notes for a further 6 years at an attractive rate, to repurchase the Notes Due 2022 at par and without penalty, validates the continual strong support of the Japanese institutional investors and vote of confidence in PLife REIT’s overall investment and growth strategy in Japan,” Yong adds.

Units in PLife REIT closed flat at $4.18 on March 22.