Jakarta – PT Lippo Karawaci Tbk (“LPKR” or the “Company”), Indonesia's largest real estate company by assets and revenues, has successfully completed a $95 million tap offering of its five-year $325 million bond. The tap will offer a yield of 7.80%, which implies a yield of 32.5bps lower (at a price of $101.29) than the bonds launched in January and the proceeds will be used to repay all bonds maturing in 2022. Lippo Karawaci will have limited debt maturities over the next five years until 2025.
At a Net Debt to Equity Ratio of 21%, Lippo Karawaci has amongst the lowest leverage of all Indonesian real estate companies. The refinancing of the 2022 Bonds further improves LPKR’s debt maturity profile.
The tap offering generated a very positive reception among investors with the issuance of the bond being oversubscribed by nearly 2 times and having an order book of $183 million.
John Riady, CEO of LPKR, commented: “As we stated a few weeks ago, we were working on different options to refinance our remaining 2022 bonds and provide a clear path of limited maturities through 2025. Now, we are positioned with no major debt maturities until 2025 and we will focus on new landed residential launches, sale of inventory and overall marketing sales improvements.”
This latest tap issue is supported by joint global coordinators and bookrunners Credit Suisse, BNP Paribas and Deutsche Bank and joint bookrunners Citi, CIMB and Mandiri.
About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)
Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of US$4.0bn at 30 September 2019. Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.
Currently, the Company has a presence in 35 cities, and is a leading Indonesian property developer with 1,461 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 81.0% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. Additionally, LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 36 hospitals across 24 cities nationwide.
LPKR also has an ownership stake in two listed REITs in Singapore, namely First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust with US$1.0bn and US$1.4bn of assets under management respectively, as at 30 September 2019.
For more information please contact:
Head of Investor Relations
Danang Kemayan Jati
Vice President, Head of Corporate Communications
This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release.