Lippo Malls Indonesia Trust raises S$75m through bonds

Visual from the company website

LIPPO Malls Indonesia Retail Trust (LMIRT) has raised S$75 million through the issuance of five-year bonds with a coupon of 4.1 per cent, a report said.

According to Singapore’s Business Times, which said it had seen the term sheet,orders were in excess of S$100 million.

This issuance saw strong demand from institutional investors, which made up 80 per cent of the final allocation. “This also marks the first bond issuance since LMIR Trust obtained an investment-grade rating on Friday and allowed the company to set a new pricing benchmark to reflect its newly minted investment-grade status,” the report quoted Pee Beng Kiong, head, Bond Syndicate, OCBC, as stating. The bank and Standard Chartered are joint lead managers and bookrunners.

The bonds are not rated. The trust itself has a rating of Baa3 with a ‘stable’ rating outlook by Moody’s, which assigned a rating to LMIRT for the first time on Friday.

The fresh debt is meant for refinancing needs and potential acquisitions. LMIRT’s next debt maturity will be in July, when its first tranche of S$200 million medium-term notes matures, said Moody’s in a reporton Friday. The trust said on Friday that it had received a committed letter of offer from banks to provide a term loan facility of up to an aggregate amount of S$260 million.

According to Moody’s, LMIRT minimises risks of rental arrears by collecting a three-month security deposit before the commencement of a lease.

It also takes advance rent payments equivalent to approximately 10-20 per cent of the total rent for the lease once a lease agreement is signed. “We expect the trust will continue to grow its portfolio through acquisitions and its financial profile will weaken, but remain well within its Baa3 rating parameters,” said Moody’s.

Also Read:

Indonesia’s Lippo appoints banks to raise $200m for e-commerce foray; plans sale of $500m holdings in Link Net Holding

Lippo Malls gets S$260m loan

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.