LMIRT raises US$200m from second bond offering

LIPPO Malls Indonesia Retail Trust (LMIRT) announced on Wednesday that its wholly-owned subsidiary, LMIRT Capital, has raised US$200 million from its second bond offering to service maturing loans and as working capital. (see amendment note)

The bonds will mature in five years on Feb 9, 2026 with a 7.5 per cent interest rate per annum, paid every half year.

Issued as guaranteed senior notes priced at 98.98 per cent of the principal amount, the offering was 5.5 times subscribed. Out of this, 89 per cent were sold to Asian investors and the remaining 11 per cent to European investors.

"Following the success of our inaugural US dollar bond issued back in June 2019, we are heartened to receive overwhelming support from fixed income investors in Asia and Europe for our second US dollar bond issuance," said James Liew, chief executive officer of the manager.

BNP Paribas, CIMB Bank Berhad, acting through its Singapore Branch, Credit Suisse (Singapore) Limited, Deutsche Bank AG, Singapore Branch and Shanghai Pudong Development Bank Singapore Branch have been appointed joint lead managers of the issue of the notes.

LMIRT added that it has obtained approval to list the bonds on the Singapore Exchange Securities Trading Limited.

Units of LMIRT closed at 6.4 Singapore cents on Tuesday, up 0.1 cent or 1.6 per cent.

Amendment note: An earlier version of this article stated that the funds raised would be used for acquisition of the Lippo Puri Mall. Funds will be used to service loans and as working capital. The article above has been revised to reflect this.