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Financial Policy

  1. (I)    Basic Policy
    Invincible Investment Corporation (hereinafter "INV") may borrow or issue investment corporation bonds (including short-term investment corporation bonds, the same applies hereinafter) for the purpose of acquiring assets, repair or distribution payments, acquiring operational funding or procuring funds for debt repayment etc., which are conducive to the efficient management of investment assets and the stability of management. The limit for borrowing funds or for issuing investment corporation bonds is JPY 500 billion. Moreover, the aggregate sum must not exceed JPY 500 billion.
  2. (II)   INV is restricted to borrowing from qualified institutional investors (hereinafter "Qualified Institutional Investors" as provided by the Financial Instruments and Exchange Act (1948 Act No. 25, 1948 and subsequent amendments, hereinafter "the FIEA"), Article 2, Paragraph 3, Item 1) but limited to the institutional investors as provided by the Act on Special Measures Concerning Taxation (1957 Act No.26 and subsequent amendments), Article 67, Paragraph 15 and. INV will negotiate various terms such as borrowing period, interest rates, collateral, and fees, with multiple financial institutions and select a lender by comprehensively judging the details of the terms. INV tries to ensure diversification of lenders and repayment terms so as to mitigate refinancing risks.
  3. (III)  The maximum ratio of the total outstanding balance of borrowings and investment corporation bonds to total assets (hereinafter "Interest-Bearing Debt Ratio") is, in principle, 60%. However the Interest-Bearing Debt Ratio of 60% can be temporarily exceeded as a result of acquiring new investment assets.
  4. (IV)  INV may undertake derivative transactions in order to hedge risk of interest rate fluctuations derived from our debts and other risks. With respect to overseas properties, INV may enter into derivative transactions to hedge foreign currency exchange risk.
  5. (V)   INV may conclude agreements to set up credit lines in advance such as commitment line agreements and reserve agreements for as-needed basis borrowings for the purposes of ensuring agility in responding to funding needs for acquiring investment assets, refunding tenant deposits or procuring operational funds.
  6. (VI)  When borrowing funds or issuing investment corporation bonds, INV may provide its investment assets as collateral.
  7. (VII) INV issues additional investment units after reviewing the long-term and stable growth prospects of assets, the financial environment, and its own financial standing, while giving considerations to dilution of investment units (decline in percentage of equity of investment units due to additional issuance of new investment units and decrease in net asset value per investment unit or distribution).
    INV will continuously aim to establish an even more stable financial standing.
  8. (VIII) In connection with investments in overseas properties, INV may enter into borrowings denominated in local currency. INV may also enter into borrowings in yen and convert the proceeds into local currency depending on the market environment at the time INV raises the funds.