LIPPO Malls Indonesia Retail Trust (LMIR) is selling perpetual bonds offering a tantalising 7 per cent coupon amid a tough environment for high yield debt.
"It looks like the highest (coupon) so far this year," said a banker.
The expected issue size is S$100-150 million, according to a term sheet seen by The Business Times.
There has been a dearth of high yield Singapore dollar bonds as investor appetite soured following the default by Swiber in July.
"The environment is very tough," said the banker, adding that there is room for investment grade issues but less so for unrated high yield bonds.
LMIR said that the proceeds will be for "refinancing of existing indebtedness".
The sole global coordinator is OCBC Bank. Joint bookrunners are OCBC Bank and CIMB, while joint lead managers are OCBC Bank, CIMB and BNP Paribas.