JAKARTA (Yosefardi) – Property developer PT Lippo Karawaci Tbk (LPKR) will issue bonds, to raise up to US$150 million, largely to fund the development of new retail malls and hospitals, and for working capital requirements and general corporate purposes.
Lippo Karawaci intends to construct 24 hospitals and 19 retail malls over the medium term. It is already constructing four hospitals and two retail malls from this total.
As of 31 December 2013, the company had cash and cash equivalents of Rp1.9 trillion (US$155 million) and total debt of Rp7.8 trillion (US$640 million), of which Rp17 billion (US$1 million) will mature over the next 12 months.
PT Lippo Karawaci Tbk is one of the largest property developers in Indonesia, with a sizable land bank of around 1,569 ha as of 31 December 2013. Since 2004, the company has diversified into the healthcare and hospitality businesses, as well as infrastructure development. Its recurring income continues to grow, comprising around 50% of total revenue over the last three years.