Lendlease prices A$450m hybrid securities issue for wholesale investors

Lendlease announced on October 15, 2025, the successful pricing of a A$450 million issue of perpetual subordinated hybrid securities. The securities were issued to wholesale investors in the Australian dollar fixed income market, following strong investor demand. Pricing is set at a fixed cash distribution rate of 5.20% per annum until the first optional redemption date in October 2028, reflecting a 170 basis points margin above the underlying base rate. Distributions are expected to be fully franked.

The combined net proceeds from this issue and a recent S$400 million hybrid securities issue will be used to repay existing debt and for general corporate purposes. These capital management initiatives aim to enhance the group's financial flexibility, support its corporate strategy, and progress planned capital recycling initiatives. The A$ hybrid issue also diversifies the group's funding position and aligns currency mix with geographic exposures.

The hybrid securities are expected to be classified as equity for accounting purposes, with settlement anticipated on October 23, 2025. Distributions are payable semi-annually in arrear until year three, then quarterly thereafter, and are deferrable at the issuer's discretion. If not redeemed on or before year three, a 500 basis points step-up applies along with a reset of the underlying base rate.