KDDI Announces Securitization of Assets and Start of Trust




Tokyo, September 25, 2001 - KDDI Corp. decided to securitize some of its real estate assets, including its head office, and to set up a trust.

KDDI expects to raise 190 billion yen from the transfer of assets and will use the money to lower its interest-bearing debt and improve its financial position.

Details of the assets to be securitised
Name Address Plot Spacem2 Total Floor Spacem2 Floors
KDDI Head Office Shinjuku-ku, Tokyo 10,676 122,190 32 Floors,
3 Basement Levels
KDDI Otemachi Chiyoda-ku, Tokyo 3,783 43,813 23 Floors,
4 Basement Levels
KDDI Osaka Chuo-ku, Osaka 13,223 35,946 12 Floors,
1 Basement Level
KDDI Nagoya Naka-ku, Nagoya 1,592 4,940 6 Floors
1 Basement Level
Total - 29,274 206,889 -

Planned time of trust

The trust will start from the end of September 2001, though the date of the transfer of the beneficial interest in the trust is yet to be decided.

Interested parties
Arranger Mizuho Securities Co., Ltd. / Daiwa Securities SMBC Co., Ltd.
Security sales Mizuho Securities Co., Ltd. / Daiwa Securities SMBC Co., Ltd.
Corporate bonds manager The Industrial Bank of Japan Ltd.
Trust bank Yasuda Trust and Banking Co., Ltd.
Rating Agency Moody's Investors Service / Standard & Poor's

Schedule:
1 The assets to be securitised will be entrusted to the trust bank, and the beneficial interest in trust transferred to a special purpose company (SPC).
2 The SPC will raise money from corporate bonds, bank loans and investment of undisclosed parners.
3 KDDI will conclude a seven year lease contract.



Copyright (C) 2001 KDDI CORPORATION All Rights Reserved.