Invincible Investment Corporation, the Tokyo-listed J-REIT that concentrates on hotels and residential buildings, signed interest rate swaps on July 14 covering ¥35.03bn of debt, both loans already on its books and a tranche it plans to draw on July 16. The swaps trade a floating rate, one-month JPY TIBOR, for fixed payments, with the counterparties Sumitomo Mitsui Trust Bank and Mizuho Bank.
The fixed rates Invincible pays under the swaps run from 1.47920% to 2.04170%. Once each loan's own lending spread is added, the REIT's effective, all-in borrowing cost on these tranches is locked between 1.97920% and 2.63130%, for terms running out as far as March 2030.
| Counterparty | Notional | Fixed Pay Rate | Effective Fixed Cost | Term End |
|---|---|---|---|---|
| Sumitomo Mitsui Trust Bank | ¥1.19bn | 1.47920% | 1.97920% | Oct 2027 |
| Sumitomo Mitsui Trust Bank | ¥2.63bn | 1.82245% | 2.12245% | Mar 2029 |
| Sumitomo Mitsui Trust Bank | ¥0.96bn | 1.83130% | 2.63130% | Mar 2029 |
| Mizuho Bank | ¥23.98bn | 1.89490% | 2.14490%-2.29490% | Jul 2029 |
| Mizuho Bank | ¥6.27bn | 2.04170% | 2.54170% | Mar 2030 |
On the same day, Invincible disclosed a separate refinancing of ¥41.15bn in maturing loans, an amount tied to three New Syndicate Loan facilities coming due July 16. Of that total, ¥15.33bn is structured as a green loan under the REIT's Green Finance Framework, with proceeds refinancing debt originally used to buy three certified properties: Hotel Mystays Premier Kanazawa, Hotel Mystays Premier Akasaka and Fusaki Beach Resort Hotel & Villas. The new loans carry spreads of 0.250% to 0.450% over one-month TIBOR and are split across six tranches maturing in three, 4.5 and five years. Lenders include Mizuho, MUFG Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, SBI Shinsei Bank and the Development Bank of Japan.
Because the refinancing replaces maturing debt at the same amount, Invincible's total interest-bearing debt stays at ¥348.65bn and its appraisal-based loan-to-value ratio holds at 42.5%. The company says both the swaps and the refinancing will have a minimal effect on its operating forecast for the six months to December 2026, and it is not revising that forecast.