Mitsubishi Estate Logistics REIT Investment Corporation (MEL) has recently announced its decision to obtain debt financing. The borrowing will be carried out through individual term loan agreements with two lenders, Mizuho Bank Ltd. and The Bank of Fukuoka Ltd.
The details of the borrowing include the borrowing amounts, interest rates, borrowing dates, repayment dates, repayment methods, and collateral. MEL will be borrowing JPY 1,330 million from Mizuho Bank Ltd. at a fixed interest rate of 0.9825%. The borrowing date is set for September 14, 2023, and the repayment date is September 14, 2030. The repayment will be made in full upon maturity, and the borrowing is unsecured and non-guaranteed.
Additionally, MEL will also be borrowing JPY 450 million from The Bank of Fukuoka Ltd. at a fixed interest rate of 1.2075%. The borrowing terms, including the borrowing date, repayment date, repayment method, and collateral, are the same as the agreement with Mizuho Bank Ltd.
The decision to obtain debt financing provides MEL with a financial opportunity to support its logistics real estate investment endeavors. By securing this financing, MEL can access the necessary funds for its operations and future growth plans.
Debt financing allows companies to raise capital by borrowing funds from external sources. Lenders provide the necessary funds, and the borrowing company agrees to repay the borrowed amount along with the applicable interest within a specified timeframe. This type of financing is commonly used by corporations to fund their business activities, including investments, acquisitions, and working capital needs.
Source: Mitsubishi Estate Logistics REIT Investment Corporation (MEL)