Lendlease starts redeeming approximately $1.22b of outstanding bonds
Lendlease Group has commenced a process to redeem its outstanding bonds, with an aggregate principal amount of approximately $1.22b. The redemption is anticipated to be completed by 30 November 2026, in accordance with the terms and conditions of the bonds.
The company said the redemption forms part of its ongoing capital management initiatives. It will be funded from the $1.25b committed standby facility secured in June 2026.
The headline facts are:
- Amount: approximately $1.22b aggregate principal amount of outstanding bonds
- Completion: anticipated by 30 November 2026
- Funding source: the $1.25b committed standby facility secured in June 2026
Following the redemption, Lendlease expects to retain liquidity in excess of $2.5b, comprising cash and undrawn committed facilities.
Keyton divestment proceeds of $525m from Aware Super were earmarked for Group debt reduction, one of the asset sales feeding the balance sheet repair that preceded this bond buyback.
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Five bonds and notes covered by the redemption
The redemption covers five instruments, spanning green bonds, fixed rate notes and a private placement. Outstanding principal amounts are shown in local currency (LCY), as the company presents them.
| Instrument | ISIN | Outstanding principal (LCY) |
|---|---|---|
| A$500m Green Bond | AU3CB0275550 | 500,000,000 |
| S$300m Fixed Rate Notes | XS1602127992 | 300,000,000 |
| A$300m Green Bond | AU3CB0278711 | 270,980,000 |
| A$80m Private Placement | AU3CB0259224 | 80,000,000 |
| £250m Green Bond | XS2383508590 | 14,000,000 |
Redemption costs and financial treatment
Lendlease anticipates two cost components, associated with unwinding related interest rate hedges and the redemption itself:
- Approximately $7m of make-whole payments
- Approximately $50m of hedge termination costs
These amounts will be recognised in the Capital Release Unit as non-recurring financing costs in the period.
The Milan MSG North exit showed that capital release has not come without cost, with a roughly $175m post-tax operating loss booked in the same unit that will now absorb these financing charges.
Lendlease said it will continue to evaluate opportunities to optimise its funding mix and access debt capital markets where appropriate.
What happens next for Lendlease
- Redemption of the bonds is anticipated to be completed by 30 November 2026, in accordance with the terms and conditions of the bonds.
- The costs will be recognised in the Capital Release Unit as non-recurring financing costs in the period.
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