Lendlease today announced it has successfully priced a A$450million issue of perpetual subordinated hybrid securities to wholesaleinvestors in the Australian dollar fixed income market, following stronginvestor demand.  

Pricing has been set at a fixed cash distribution rate of5.20% per annum until the first optional redemption date in October 2028,reflecting a 170bps margin above the underlying base rate.

Distributions are expected to be fully franked.  

The offer follows Lendlease’s recent S$400 million issue ofhybrid securities. The combined net proceeds will be used to repay existingdebt and for general corporate purposes. These capital management initiativesprovide enhanced financial flexibility for the Group, as it continues toexecute on its corporate strategy and progresses planned capital recyclinginitiatives.

The A$ hybrid issue will further diversify theGroup’s funding position, and help align the currency mix of the Group’sfunding sources with its geographic exposures. The hybrid securities areexpected to be classified as equity for accounting purposes. The key terms ofthe securities are attached to this release.