Leighton Finance International, Leighton Holdings Ltd’s (ASX: LEI) wholly owned subsidiary, is redeeming the five-year 7.875 per cent fixed-rate US$110m Guaranteed Notes issued on 16 May 2006.

Chief Financial Officer, Mr Peter Gregg, said that notice is hereby given that the Company intends to redeem the Notes at their principal amount, together with accrued and unpaid interest, pursuant to the terms and conditions of the Notes, on 16 May 2011, being the maturity date of the Notes. Upon their redemption at maturity, all the Notes will be cancelled.

“The proceeds of the Notes issue have been used to support and grow the Leighton Group’s operations in Indonesia. However we have increasingly been funding the Group’s mining operations using in-country, US$ denominated leasing facilities and will fund the balance of our requirements using the Group’s existing financing facilities,” said Mr Gregg.

“A major rationale for the Notes issue was to access US$ borrowings which provides a natural hedge against our US$ denominated business in Indonesia. Since the Notes issue, we have tapped the US Private Placement market which diversified our funding, both in terms of currency and duration, and this negates the requirement for the Notes issue.

“The duration of our debt portfolio is lengthening with the profile gradually restructured over recent years to longer-term debt. In addition, the US Private Placement financing has been done at a substantially lower rate than the existing Notes issue so our cost of funding has been reduced.

Non-exec director resigns

Meanwhile, Leighton Holdings Ltd today advised that Dr Herbert Lütkestratkötter had resigned from the board as a result of his retirement as Chairman of the Executive Board of Leighton’s major shareholder, HOCHTIEF AG.

Leighton’s Chairman, Mr David Mortimer, thanked Dr Lütkestratkötter for his contribution to the Company during his time as a Non-executive Director since 2007.

“Herbert has been a valuable contributor to the Leighton Board and I have appreciated his counsel and the support he has provided as a representative of our major shareholder,” said Mr Mortimer.

“On behalf of the Board I wish Herbert well in his retirement and thank him for his contribution to Leighton over the last 4 years.” said Mortimer.

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