Lippo Malls Indo Retail Trust (LMIRT) - OCBC Investment 2017-06-14: Proposed Issuance Of S$120m Perpetual Securities

Lippo Malls Indo Retail Trust (LMIRT) - OCBC Investment 2017-06-14: Proposed Issuance Of S$120m Perpetual Securities LIPPO MALLS INDO RETAIL TRUST D5IU.SI

Lippo Malls Indo Retail Trust (LMIRT) - Proposed Issuance Of S$120m Perpetual Securities

  • Lippo Malls Indonesia Retail Trust (LMIRT) recently announced that it intends to issue S$120m worth of fixed rate perpetual securities. The perpetual securities 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 S$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 S$50m 5.875% bond due in 6 Jul 2017 and the S$75m 4.48% bond due 28 Nov 2017. 
  • As such the perp issuance is expected to offer LMIRT greater headroom to fund future acquisitions while maintaining its Baa3 Moody’s rating and keeping below the regulatory limit of 45% gearing. 
  • Maintain BUY on LMIRT with a fair value of S$0.435.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2017-06-14
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.435 Same 0.435



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