Nippon Building Fund Incorporation : Notice Concerning Issuance of Investment Corporation Bonds

August 7, 2020

To All Concerned Parties

Name of REIT Issuer:

Nippon Building Fund, Inc.

Koichi Nishiyama, Executive Director

(TSE Code : 8951)

Contact:

Asset Management Company

Nippon Building Fund Management, Ltd.

Yoshiyuki Tanabe, President and CEO

Person to Contact:

Yasushi Yamashita, General Manager

(TEL. [phone])

Notice Concerning Issuance of Investment Corporation Bonds

Nippon Building Fund, Inc. ("NBF") hereby provides notice of its decision on August 7, 2020 to issue investment corporation bonds as follows:

Description

1. Summary of Investment Corporation Bonds

1. Name of Investment Corporation Bonds

Nippon Building Fund, Inc. No.19 Unsecured Investment Corporation Bonds (hereinafter referred to as "No.19 NBF Bonds")

(with special pari passu conditions among specified NBF Bonds)

1. Total Amount of Bonds to be Issued 15 billion yen
2. Form of Certificates of No.19 NBF Bonds to be Issued
   Under the applicable Act on Book-Entry Transfer of Corporate Bonds and Shares, no bond certificates for No.19 NBF Bonds will be issued.
3. Issue Price
   100 yen per 100 yen of each Bond
4. Redemption Price
   100 yen per 100 yen of each Bond
5. Interest Rate
   0.180% per annum
6. Denomination Price 100 million yen
7. Method of Offering Public offering
8. Date of Subscription August 7, 2020
9. Date of Payment August 14, 2020
10. Collateral
    No secured mortgage or guarantee is applicable to, and no assets are specifically reserved as collateral for No.19 NBF Bonds.
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1. Method and Date of Redemption
   The total amount of No.19 NBF Bonds will be redeemed on August 14, 2025 (or the immediately preceding business day if such day is a bank holiday in Japan).
2. • No.19 NBF Bonds may be repurchased and cancelled at any time after the date of payment unless specified to the contrary by the relevant transfer agent.
3. Date of Interest Payment

February 14 and August 14 of each year (or the immediately preceding business day if such day is a bank holiday in Japan).

1. Financial Covenant
   "Negative pledge clause" is applicable.
2. Ratings
   AA+ (Japan Credit Rating Agency, Ltd.)
3. Book-entrytransfer institution
   Japan Securities Depository Center, Incorporated
4. Fiscal, Issuing and Paying Agent Sumitomo Mitsui Trust Bank, Limited
5. Underwriter
   SMBC Nikko Securities Inc.

2. Reason for the Issuance

To mitigate risks of interest-rate increase and refinancing by increasing the ratio of long-term fixed interest rates for interest-bearing debt through the issuance of No.19 NBF Bonds.

3. Amount, Use and Expected Date of Expenditure of Proceeds

1. Amount of capital to be procured (estimated net proceeds)
   14,930 million yen
2. Specific use and expected date of expenditure of proceeds
   Procured funds will be used to repay interest-bearing debt, as well as for our working capital. The remaining amount, if any, will be kept at hand, and may be used in the future as part of the funding to acquire Specified Assets ("tokutei shisan", as stipulated in Article 2 (1) of the Act on
   Investment Trusts and Investment Corporations).

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4. Status of Borrowings etc. after Issuance of No.19 NBF Bonds

			(Unit: million yen)
	Before	After	Increase /
	Financing	Financing	Decrease
Short-term borrowings	0	0	0
Long-term borrowings	28,000	28,000	0
(Floating interest rate)
Long-term borrowings	365,500	365,500	0
(Fixed interest rate)
Bonds	37,000	52,000	15,000
Total	430,500	445,500	15,000

5. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information

There is no change to the content of "Investment Risks" of the Securities Report submitted on March 30, 2020 with respect to the risks involved in repayment etc. due to the current Issuance of No. 19 NBF Bonds.

End

This English language notice is a translation of the Japanese language notice dated August 7, 2020 and was prepared solely for the convenience of, and reference by, overseas investors. Neither NBF nor Nippon Building Fund Management, Ltd. makes any warranties as to its accuracy or completeness.

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