19th Sep 2013 08:35
LONDON (Alliance News) - Japan Residential Investment Company Ltd Thursday said it had secured a JPY5.3 billion, or about GBP33.57 million, loan from Mizuho Bank, which will help fund the purchase of its latest property and refinance other debt it has with the bank at a lower interest rate.
In a statement, the Japan property developer said it will drawdown the new five-year refinancing loans on September 20. The loans carry a floating interest rate, currently 0.55% a year. From October, it will be calculated as 40 basis points over the three-month yen TIBOR, which would make the rate 0.63% at current rates.
The company will use the loan to repay the GBP19.34 million debt it currently owes Mizuho that is due to mature in September 2014. That debt has an interest rate of 1.73%.
Japan Residential said Wednesday that it has agreed to buy a 2,245 square foot residential property in Tokyo for GBP9.3 million.
The company regularly refinances parts of its debt to bring down interest rates and fund property acquisitions.
The company's shares last traded at 66.5 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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