Leighton issues US$110 m debt to support Indonesian operations

Australia's largest construction and infrastructure group Leighton Holdings Limited announced Wednesday the issue of a new US$110 million, 5-year fixed-rate guaranteed notes to repay inter-company loans and to support its group operations in Indonesia.

Leighton said the notes issue, which have been rated BB/Stable/- by Standard and Poor?s, will be listed on the Singapore Stock Exchange with Commonwealth Bank of Australia and HSBC as joint lead managers and bookrunners.

?Our operations in Indonesia have grown rapidly in recent years and as of 28 February the Group had some US$1.5 billion worth of work in hand in Indonesia. By raising debt, under which recourse is limited to the Indonesian businesses, the Leighton Group can effectively reduce the risks associated with its exposure to Indonesia and create further opportunities for expansion in that country,? said Leighton?s Chief Executive Officer, Wal King, in a statement.

King also said Leighton expected demand for the country?s resources to stay strong. This will provide a solid, long-term level of activities for its subsidiaries PT Thiess Contractors Indonesia and PT Leighton Contractors Indonesia. (robert)