TEMPO.CO, Jakarta - Lippo Karawaci (IDX: LPKR) issued a five-year global bond worth US$325 million, or roughly Rp4.45 trillion yesterday, January 14. The bonds offer a yield of 8.125 percent.
The bond issuance is supported by global book-runners including Credit Suisse, BNP Paribas and Deutsche Bank.
Lippo Karawaci CEO John Riady said that the bond offering proceeds would be used to pay some of the company's debts maturing in 2022.
The bond issuance was welcomed by investors and was oversubscribed by 4.5 times.
John said LPKR is also in the final stages of obtaining a loan facility to settle its debts from a maturing bond, worth US$100 million. By settling early, Lippo Karawaci will be free from huge debts within the next five years.
With a net debt-to-equity ratio (D/E) of 21 percent, Lippo Karawaci is among Indonesia's property firms with the lowest debt ratios. By refinancing its maturing bonds in 2022, LPKR's debt profile will further improve.