LMIRT Capital, the wholly-owned subsidiary of Lippo Malls Indonesia Retail Trust (LMIRT), has successfully priced and allocated its second US dollar bond of US$200 million ($266.2 million) five-year guaranteed senior notes on Feb 3.

The notes will mature on Feb 9, 2026, and bear a coupon of 7.5% per annum payable semi-annually in arrears.

The notes, which are guaranteed by LMIRT’s trustee Perpetual (Asia), will be issued at an issue price of 98.98% of the principal amount of the notes.

The final order book of the offering was 5.5 times over-subscribed and stood at US$1.1 billion from 109 investor accounts.

SEE: Moody’s places Lippo Malls Indonesia Retail Trust’s ratings on review for downgrade

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Some 89% of the notes were sold to Asian investors, and the remaining 11% to European investors.

BNP Paribas, CIMB Bank Berhad Singapore, Credit Suisse (Singapore) Limited, Deutsche Bank Singapore and Shanghai Pudong Development Bank Singapore have been appointed as joint lead managers.

“Following the success of our inaugural US dollar bond issued back in June 2019, we are heartened to receive overwhelming support from fixed income investors in Asia and Europe for our second US dollar bond issuance,” says James Liew, CEO of the manager.

“This is a testament to their belief in the recovery story of LMIR Trust from the Covid-19 pandemic. The acquisition of our largest and flagship asset, Lippo Mall Puri, has definitely boosted investors’ confidence in the Trust. Along with its attractive net property income yield and strong potential for rental reversions and capital appreciation, this iconic asset will aid in repositioning the Trust and anchoring it for sustainable growth.”

Liew adds that the funds from the notes will be used to refinance the trust’s maturing loans due 2021. It will also boost its balance sheet and improve the flexibility of the trust’s cash flows.

Units in LMIRT closed flat at 6.4 cents on Feb 2.