Press Release
Noteholders Demonstrate Confidence in Lippo Karawaci's Financial Position
25 March 2019

Jakarta, 25 March 2019 - PT Lippo Karawaci Tbk ("LPKR" or the "Company"), Indonesia's leading integrated real estate developer, today announced that it has closed its tender offer ("Tender Offer") for its outstanding USD410m 7.00% senior notes due 2022 ("2022 Notes") and USD425m 6.75% senior notes due 2026 ("2026 Notes"), made as part of its comprehensive strategic transformation plan announced on 12 March 2019.

As part of the Tender Offer, holders of the 2022 Notes and 2026 Notes, who had validly tendered prior to or at 4.00 p.m. London time on 22 March 2019 (the "Expiration Deadline"), will receive a price equal to the amount of (a) USD900 per USD1,000 principal amount in the case of the 2022 Notes and (b) USD820 per USD1,000 principal amount in the case of the 2026 Notes. These represent a premia to the respective traded prices of the 2022 Notes and 2026 Notes prior to the launch of the Tender Offer on 12 March 2019. At the Expiration Deadline, valid tenders had been received with respect to USD8.67m in aggregate principal amount of the 2022 Notes and 2026 Notes.

The Tender Offer is one of LPKR's initiatives to delever its balance sheet as part of its strategic transformation plan. The balance amount earmarked for the Tender Offer will be used for the repayment of other existing indebtedness, and/or general corporate purposes. Additionally, the Company will also utilise USD125m towards the repayment of other existing indebtedness due within the next two years, to achieve its objective of deleveraging its balance sheet.

The modest take-up rate and increase in traded prices of the notes post the launch of the Tender Offer attest to the noteholders' confidence in LPKR's ability to improve liquidity and meet its financial obligations in the medium to long term. This is in line with the global ratings agencies' current views on the Company. Moody's Investors Service recently changed LPKR's ratings outlook to 'Stable' from 'Negative'; S&P Global Ratings placed the Company's long-term issuer credit rating on CreditWatch Positive; while Fitch Ratings placed both the Company's Long-term Issuer Default Ratings as well as its National Long-term Rating on Rating Watch Positive.

Mr. John Riady, CEO of LPKR, said, "The traded prices of LPKR's notes and shares have steadily improved since the announcement of our strategic transformation plan, and I am heartened by the strong vote of confidence from our noteholders and shareholders alike. The management team and I are more committed than ever to execute the rest of our strategic transformation plan."

Credit Suisse is the Dealer-Manager for the Tender Offer.


About PT Lippo Karawaci Tbk (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$3.4bn as at 31 December 2018. 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.

Present in 35 cities, we are Indonesia's leading property developer with 1,297 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 54.4% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar.

LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia's leading private hospitals network, with 35 state-of-the-art-hospitals across 27 cities nationwide – 12 hospitals in Greater Jakarta, 23 across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara, supported by over 2,900 specialists and general practitioners and over 10,000 nurses and support staff.

LPKR also has 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 31 December 2018.


For more information please contact:

PT LIPPO KARAWACI TBK

Investor Relations:
William Wijaya Utama
Senior Manager
william.utama@lippokarawaci.co.id
Mobile: +62818138688

Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communication
DanangJ@lippokarawaci.co.id
Mobile: +628557801299

COGNITO COMMUNICATIONS

 Agus Hermawan
Associate Director
agus@cognito.co.id
Tel: +6221 739 9928
Mobile: +62 811 850 102


Disclaimer

This press release is not for distribution in the United States. This press release and the information contained herein is not an offer to sell securities in the United States. Securities may not be offered or sold in the United States or to, or for the account or benefit of U.S. person (as such term in defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) absent registration pursuant to the Securities Act, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the issuer and management, as well as financial statements. No money, securities or other consideration is being solicited by this press release or the information contained herein and, if sent in response to this press release or the information contained herein, will not be accepted.

This press release contains 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 

This press release does not constitute as a public offering in Indonesia under Law Number 8 of 1995 regarding Capital Markets and its implementing regulations (the "Indonesian Capital Markets Law"). This press release and the securities described herein will not be and may not be offered within the territory of the Republic of Indonesia or to Indonesian nationals, in a manner which constitutes a public offering under the Indonesian Capital Markets Law.