NISP Demand for Lippo Karawaci bonds reaches US$650mn (LPKR, Rp560)

• Lippo Karawaci received good response for its global bonds issue with demand reaching US$650.0mn. However the company has decided to only issue a total value of US$270.6mn with a coupon rate of 9%.

• US$189.0mn will be used in exchange for the previous bonds issued by Lippo Karawaci Finance, the subsidiary of LPKR. US$81.7mn will be issued for new investors.

• LPKR is trading at 2010F consensus PER of 18.7x and EV/EBITDA of 11.6x.