Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)

Lippo Malls Indonesia Retail Trust has obtained committed unsecured term loan facilities of up to SGD350 million (USD260 million) with an over allotment option of up to SGD70 million.

The loan facilities were obtained through HSBC Institutional Trust Services in its capacity as trustee of the REIT, with a number of banks including BNP Paribas, CIMB Bank, JPMorgan Chase Bank, The Bank of East Asia, and CTBC Bank.

Proceeds from the loan facilities will be used towards property acquisitions, and the refinancing of existing debt obligations, said the Singapore-listed retail REIT with a focus on Indonesian shopping malls.

The first drawdown of the facilities will take place on 26 August to repay an existing term loan facility, which will turn into a secured facility by 31 August 2016, it added.

“This is the first, but certainly not the last unsecured long term bank financing for Lippo Malls Indonesia Retail Trust with an attractive pricing”, said Viven Gouw Sitiabudi, Executive Director of the REIT’s manager.

“We believe that by converting a potential secured facility to an unsecured one, we will be able to build a strong and long term funding and capital structure for growth initiatives in the coming years”, she added.

Units of Lippo Malls Indonesia Retail Trust last changed hands on the Singapore Exchange at SGD0.375.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.