Lippo Malls to issue $120m worth of perpetual securities

It will come with a fixed rate of 6.6% per annum.

Lippo Malls Indonesia Retail Trust (LMIRT) recently announced that it intends to issue $120m worth of fixed rate perpetual securities.

According to OCBC Investment Research, this will come with a fixed rate of 6.60% per annum, with the first reset date falling on 19 Dec 2022 and subsequent resets occurring every five years thereafter.

"LMIRT’s decision to issue new perpetual securities does not come as a surprise, as it had previously issued $140.0m 7.0% perpetual securities on 27 Sept 2016. We believe that the net proceeds from the issuance will be used in part to fund the S$33.2m Kendari acquisition, as well as to temporarily refinance the $50m 5.875% bond due in 6 Jul 2017 and the $75m 4.48% bond due 28 Nov 2017," the brokerage firm said, noting that the issuance is expected to offer LMIRT greater headroom to fund future acquisitions.