Lippo Karawaci says liquidity is safe to pay debt

TANGERANG, KOMPAS.com – A number of highlights from the Lippo group have allowed PT Lippo Karawaci Tbk (LPKR) to clarify his position.

The company explains that its liquidity is safe and that it must pay its debt which will expire in 2020. Indeed, the company has just sold badets worth 2.2 billion rupees.

"We have successfully implemented the badet disposal plan by finalizing the sale of First Real Estate Investment Fund Manager (First REIT) and the disposal of a portion of the First REIT Units generating funds. of 2.2 billion rupees, "said Danang Kemayan Jati, head of corporate communications at LPKR, in a press release on Wednesday (27/11/2018).

Danang added that, in parallel with the disposal of future badets, the company will obtain net cash of more than 6,000 billion rupees.

With the sale being claimed, the company claimed to have strengthened LPKR's liquidity position to meet all debt repayment obligations, including US $ 75 million bonds maturing in June 2020.

"So, the next LPKR bond that will expire will be a 2022 bond," added Danang.

Danang also said the company would continue to improve its liquidity conditions by increasing its equity in the future.

"We will also consider several options to increase LPKR's capital in the future," he said.

Quote Kontan.co.id, LPKR had regretted the decision of rating agency Fitch Ratings to reduce the rating of listed real estate companies from B to CCC + and the national rating of BBB + to B- some time ago.

As a result of this rating downgrade, this further weakens LPKR's credit profile and creates significant financial liabilities. Although, in terms of liquidity, LPKR is still sufficient for the next 12 months, thanks to the sale of certain shares of First Real Estate Investment Trust (First REIT).

"Liquidity should be sufficient to end the 2020 debt, if we take into account the potential sales of Lippo Mall Puri in the next six months," Kontan.co.id said on Monday (11/05 / 2018).