Indonesian Builder Lippo Buys Back Debt in Bid to Lower Risk (1)

Junk-rated Indonesian property developer PT Lippo Karawaci agreed to buy back more than 70% of its dollar notes due in 2025 as it seeks to reduce refinancing risk.

A unit of Lippo Karawaci accepted $170.6 million of notes tendered by holders, according to a statement late Thursday. Fitch Ratings said earlier the move constituted a “distressed debt exchange.”

The debt buyback will reduce the near-term refinancing burden for the company, which offered to repurchase the notes at a discount. Like elsewhere, high borrowing costs are straining the balance sheets of some Indonesian developers that also have to contend ...