Industrial & Infrastructure Fund Investment Corporation (Tokyo Stock Exchange Company Code: 3249) News Release June 25, 2012 Notice Concerning Partial P of Subordinated Loans, Debt Financing Conclusion of Swap Agreement Industrial & Infrastructure Fund Investment Corporation ( IIF ) announced today that it has determined to make partial ps on its subordinated loans, obtain long-term debt financing, conclude an interest rate swap agreement, as outlined below. 1. Outline of the partial p of subordinated loans, debt financing the conclusion of an interest rate swap agreement IIF will obtain new long-term debt amounting to in total on June 29, 2012 as described in 3 (1) to (3) below repay on the same day as the total p of its subordinated loans. With respect to the long-term debt outlined in 3 (2) (3) below, IIF will conclude a 7-year interest rate swap agreement to fix the interest rates, as described in 4 below. These measures will help IIF reduce financing costs increase profit distributions. <Outline of Measures> [Significance of these measures] Aim to refinance with new long-term s, strengthen financial stability reduce financing costs. Obtain new financing from a major life insurance company. plan for subordinated loans (Note 1) s Bank of Tokyo-Mitsubishi UFJ Remaining life 4.2 years Variable interest rate 1.73643% (Note 2) (Note 1) (Note 2) Please see 2 below for details. The rate represents the applicable interest rate as of June 25, 2012. Planned amount of Remaining life 7.5 years Variable interest rate 1.29750% The remaining life fixed interest rate are based on the weighted average life rate on the loans to be repaid. <Breakdown of the planned (Note 4) amount of > 1,000 New lender Nippon Life Insurance Company Loan term 8.0 years Fixed interest rate1.42000% 583 Bank of Tokyo- Mitsubishi UFJ Loan term 7.0 years Fixed interest rate1.17500% 417 Loan term 7.0 years Fixed interest rate1.17500% (Note 4) Please see 3 4 below for details. 1
2. Partial early of the Subordinated loan (1) Partial early date funds Japanese Bankers Association ( JBA )+ 1.40% (Note) June 29, 2012 Cash by debts in 3. (1)-(3) as below (2) Subordinated loan after partial early date 3,900 1.40% (Note) August 10, 2011 August 31, 2011 August 31, 2016 (Note)* Interest payments are due on 31st in March, 30th in June, September December of every year on the principal date (on the last business day of each month, if each of the day is not business day). The first payment date is March 31, 2014. On the interest payment dates, IIF repays 70 every year on the last payment date IIF will repay the remainder of the debt. * Principal (in full or partial) can be repaid on the day. applicable rate of the based on basic rate for applicable term. 3. Debt financing (1) Debt by long-term debt Nippon Life Insurance Company 1,000 (fixed rate) 1.42000% (June 29, 2012 June 30, 2020) (Note)*Interest payments are due on 30th in June 29th in December of every year as well as on the date of final principal (on the last business day of each month, if each of the day is not business day). June 30, 2020 (2) Debt by long-term debt 583 0.60% (Note) June 28, 2019 2
(Note)* Interest payments are due on 31st in March, 30th in June, September December of every year on the principal date (on the last business day of each month, if each of the day is not business day). applicable rate of the based on basic rate for applicable term. (3) Debt by long-term debt 417 0.60% (Note) (Note)* Interest payments are due on 31st in March, 30th in June, September December of every year on the principal date (on the last business day of each month, if each of the day is not business day). applicable rate of the based on basic rate for applicable term. June 28, 2019 4. of the of interest swap (1) Reason for completion of the of interest swap To fix interest rate of the debt regarding the section 3-(2) (3) above scribed, for applicable period from June 29, 2012 to June 28, 2019 to risk hedge against fluctuation of interest rate. (2) Summary of Interest swap in 3-(2) 1.Guarantor 2.The Estimated principal 583 Fixed interest: 0.57500% 3.Interest Valuable interest received: Japanese Banker s Association Japanese Yen TIBOR(three months) 4.Contract period June 29, 2012-June 28, 2019 Fixed interest payments valuable receipt are due in 31 of March, 30 of June, 5.The interest September December of every year as well as on the final principal due date (on the last business day of each month, if 30th of each month is not business day). The first payment date is September 30, 2012). * The interest rate as above scribed in the section 3-(2) is fixed 1.17500% with the of interest swap. (3) Summary of Interest swap in 3-(3) 1.Guarantor 2.The Estimated principal 417 Fixed interest: 0.57500% 3.Interest Valuable interest received: Japanese Banker s Association Japanese Yen TIBOR(three months) 4.Contract period June 29, 2012-June 28, 2019 Fixed interest payments valuable receipt are due in 31 of March, 30 of June, 5.The interest September December of every year as well as on the final principal due date (on the last business day of each month, if 30th of each month is not business day). The first payment date is September 30, 2012). * The interest rate as above scribed in the section 3-(3) is fixed 1.17500% with the of interest swap. 3
5. Status interest-bearing debt after new financing (as of June 29, 2012) (million of yen) Before refinance After refinance Variation Short-term 0 0 0 Long-term 74,100 76,100 + Sum of debt 74,100 76,100 + Subordinated loan 5,900 3,900 - Sum of interest bearing debt 80,000 80,000 ±0 *Long-term debt due within one year is included, if the original term of the debt was more than one year. 6. Future outlook of IIF There is slight impact on the operating results for June 2012 (10 th period: Jan 1, 2012 to June 30, 2012) December 2012 (11 th period: July 1, 2012 to December 31, 2012 ) Fiscal Period, in the partial early of Subordinated loan, Debt Financing Conclusion of Swap Agreement as above, we do not revise these operating results. And also we announced press releases, Notice Concerning Binding New lease Contract on June 25, 2012, for more information on the future out look of IIF, please refer to Effect of measures announced on June 25, 2012 on expected dividends per unit 4
Reference <Payment track record for Subordinated investment corporation bonds Subordinated loans> () 10,000 8,000 6,000 4,000 Subordinated investment corporation bonds 8,000 8,000 Subordinated investment corporation bonds Repaid amount 2,100 Subordinated loans 5,900 Repaid in the current period Subordinated loans 3,900 0 Dec. 2010 Jun. 2011 Dec. 2011 Jun. 2012 (Forecast) (7th period) (8th period) (9th period) (10th period (Forecast)) About IIF: Industrial Infrastructure Fund Investment Corporation ( IIF ) is the first J-REIT focused on acquiring operating both industrial infrastructure properties in Japan-properties that play a vital role in the Japanese economy, for which IIF expects to see stable dem in the mid to long term. With respect to industrial properties, IIF intends to invest in a diverse portfolio of properties, including manufacturing research development facilities. Please refer to our website at http://www.iif-reit.com/english/index.html Contacts: For the further information relating to this press release as well as IIF its Asset Manager, please feel free to contact Mr. Yoshito Nishikawa (Telephone Number: 81-3-5293-7090), Head of Industrial Division at Mitsubishi Corp.-UBS Realty, Inc., Asset Manager for Industrial & Infrastructure Fund Investment Corporation. Investor Relations: Telephone Number: 81-3-5293-7091 It is for informational purposes only, the Japanese language release should be referred to as the original. 5