Lippo Malls Indonesia Retail Trust sells perpetual bonds with 7% coupon

Proceeds is for refinancing debts.

As it scour for ways to refinance its existing debts, Singapore-listed Lippo Malls Indonesia Retail Trust (LMIR) is putting perpetual bonds with 7% coupon up for sale.

According to a report by DBS, LMIR is selling the perps amid tough environment for high yield debt.

DBS noted that the expected issue size is between $100 million and $150 million.

"LMIR said the purpose of the proceeds is for 'refinancing of existing indebtedness'. The issuer has five outstanding bonds, with one due next month and two maturing in 2017," the report cited.

Overall, DBS pointed out that this year has already seen five perp deals.

The highest priced before LMIR's deal was Hyflux's $500 million 6% issue that was sold in May.