AAP
Leighton Holdings Ltd has successfully completed a $670 million syndicated performance bond facility with a consortium of Australian and international lenders.
The facility will be used to provide the performance bond obligations of the various Leighton Group operating companies as they take on and deliver construction projects.
Leightons chief financial officer Peter Gregg said he was thankful for their support.
"We received a great deal of interest which we believe reflected the quality of the transaction and the strong position of the Leighton group," he said.
"The facility provides a significant level of extra headroom for the Leighton Group, reflecting our confidence in the outlook for the business over the next few years."
As at November 30, the company had total bank guarantees, bonds and letters of credit in excess of $3 billion.
"This facility increases that capacity and introduces new and diverse banking relationships to the group," he said.
"Over the last year, we have placed two debt issues of US$280 million and $280 million respectively with United States and Australian corporate investors."
The US investors included insurance companies and pension funds seeking to invest in high quality corporates like Leighton for between five and 10 years. In Australia, 10 institutional fund managers took up a bond placement as they sought fixed interest investments for a five-year term, he said.
Leighton said ANZ Banking Group were the coordinating arranger and bookrunner for the transaction.
