Lippo Village, Tangerang, Indonesia
Tuesday, 25 October 2016
PT Lippo Karawaci Tbk (LPKR) today announced that it has successfully issued USD425 million, 6.75% 10 year Senior Notes at par. This is the first ever 10 year bond from the Property sector in Indonesia The transaction was very well received by investors, with the final order book estimated at US$1.5bn or 3.5x oversubscribed demonstrating investors’ confidence in the Company. The final yield of 6.75%, tightened 25 bps from its initial guidance.
The net proceeds from the issue will be used to fund the redemption of the existing USD 403 million, 6,125% Senior Notes due 2020. The 2026 facility issue is rated Ba3 by Moody’s, B+ by S&P and BB- by Fitch. High quality Asian and European investor participation was noteworthy with global asset managers taking up 75% of the notes. APAC investors were allocated 69% of the facility with the balance to EMEA accounts.
BofA Merrill Lynch, BNP Paribas, and Deutsche Bank acted as Joint Global Coordinators while BofA Merrill Lynch, BNP Paribas, Deutsche Bank, Citigroup, Credit Suisse, and UBS acted as Joint Bookrunners.
Ketut Budi Wijaya, President Director LPKR stated, "We are very pleased with the enthusiastic response from bondholders and investors. This is the second time we have tapped the market this year with great success reflecting investor confidence in the strength and sustainability of our integrated and balanced business model, our track record and future growth prospects. We wish to thank our existing bondholders for their continued support as well as the new investors who saw an opportunity in this issuance to be part of our success."
LPKR is Indonesia's largest listed property company by Total Assets and Revenues, anchored by a large land bank and solid recurring income base. LPKR's businesses comprise of Residential/Township, Retail Malls, Hospitals, Hotels and Asset Management. LPKR is listed on the Indonesian Stock Exchange with a market capitalization of Rp22.8 trillion or USD1.76 billion as of September 30, 2016
For more information please contact:
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. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of LPKR. No warranty (expressed or implied) is made to the accuracy or completeness of the information. 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. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.