Japan: Parkway Life sells ¥3.3 bn debt

Chiba City, Chiba Prefecture, Japan

Parkway Life REIT, which is owned by IHH Healthcare, has sold ¥3.3 bn (US$30.3m) six-year senior unsecured fixed-rate notes at 0.51% to refinance debt.

The paper was issued under the group’s S$500 m (US$371.2m) multicurrency debt issuance programme.

Proceeds will repurchase its ¥3.3bn 0.58% 2022s at par which gives the company a 7 basis point saving over 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,” said chief executive Yong Yean Chau.

The paper was strongly supported by Japanese institutional investors.

DBS was sole lead manager and bookrunner on the deal.