Lendlease to Redeem About $1.22b of Outstanding Bonds

Lendlease (ASX:LLC) has commenced a process to redeem its outstanding bonds, which it describes as part of its ongoing capital management initiatives, funded from a committed standby facility secured in June 2026.

The bonds have an aggregate principal amount of approximately $1.22b, and the redemption is anticipated to be completed by 30 November 2026 in accordance with the terms and conditions of the bonds. Funding will come from the $1.25b committed standby facility. The bonds listed are an A$500m Green Bond, S$300m Fixed Rate Notes, an A$300m Green Bond with 270,980,000 outstanding, an A$80m Private Placement and a £250m Green Bond with 14,000,000 outstanding. Lendlease anticipates costs of ~$7m of make-whole payments and ~$50m of hedge termination costs from unwinding related interest rate hedges, to be recognised in the Capital Release Unit as non-recurring financing costs in the period. Following the redemption, it expects to retain liquidity in excess of $2.5b, comprising cash and undrawn committed facilities.

The release does not state the interest rate or term of the standby facility, or the expected effect on ongoing interest costs. Lendlease says it will continue to evaluate opportunities to optimise its funding mix and access debt capital markets where appropriate, without naming any transaction.