Nippon Accommodations Fund (TYO:3226) will borrow a total of 7 billion yen from MUFG Bank, a Sumitomo Mitsui Banking Corp.-arranged syndicate, and The Fukui Bank, according to a Tokyo bourse filing on Monday.

The loans carry floating rates tied to JBA Japanese Yen TIBOR plus spreads of 0.10%-0.25% and have maturities from September 2026 to September 2036, the filing said.

Proceeds will be used to repay existing borrowings, including 6 billion yen from MUFG Bank and 2 billion yen from Sumitomo Mitsui Banking, all maturing on Sept. 30.

Following the transaction, total interest-bearing debt will decrease from 175.7 billion yen to 174.7 billion yen, while the interest-bearing debt ratio edges down slightly from 54.7% to 54.6%.