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)

Amid a dearth in SGD-denominated high-yield bonds, Lippo Malls Indonesia Retail Trust announced the pricing for SGD140 million worth of 7% subordinated perpetual securities on 20 September.

The bonds will be issued to qualified investors through HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of the Singapore-listed, Indonesia-focused retail REIT.

BNP Paribas, CIMB Bank Berhad and Oversea-Chinese Banking Corporation Limited have been appointed as joint lead managers in the issue.

Lippo Malls Indonesia Retail Trust is issuing the perpetual securities under its SGD1 billion Euro medium term securities programme, and will use the proceeds to refinance existing loans.

The bonds will not feature a fixed redemption date, and will confer holders a right to receive distribution payments at a rate of 7% per annum, with the first reset date falling on 27 September 2021.

Subsequent resets will occur every five years thereafter. The reset distribution rate will be the prevailing five-year SGD interbank offer (SIBOR) rate in addition to an initial spread of 5.245%, said the REIT.

Distributions from the perpetual securities will be payable semi-annually in arrear on the 27th March and 27th September of each year.

Units of Lippo Malls Indonesia Retail Trust finished the trading day unchanged from its previous session on the Singapore Exchange to end 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.