The rating action follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on 7 January 2013. The USD130m bonds are issued as a tap to the existing USD273.306m 6.125% notes due 2020.
LPKR plans to use the issue proceeds to refinance its 9% notes falling due in 2015. This tap issue will not result in an increase in LK’s net debt and therefore will not impair its current financial profile. LPKR’s ratings are supported by Indonesia’s favourable long-term demand for residential properties and healthcare services, a continued strong recurring income base, and LPKR’s demonstrated track record in managing these businesses. (Indonesia Today)