$200 million Notes issue positions Leighton for further growth

Company Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000

Re: $200 million Notes issue positions Leighton for further growth

Dear Sir,

Please find attached an announcement by Leighton Holdings Limited.

Yours sincerely,


A.J. MOIR
Company Secretary

$200 million Notes issue positions Leighton for further growth

Issue Date: 21 October 2003
Issued by: Leighton Holdings Limited

Leighton Holdings Limited (Leighton), Australia’s largest project development and contracting group, announced to ASX today that it intends to raise up to $200 million through an issue of convertible unsecured subordinated resettable notes (Leighton Notes).

Leighton Holdings’ Deputy Chief Executive and CFO, Mr Dieter Adamsas, said that the issue of Leighton Notes will provide access to additional balance sheet facilities to support continued growth in the Group’s core business.

“We utilise our strong financial position to fund capital investments and to support guarantees, bonds and letters of credit. Proceeds raised through the issue will be used to support our ability to bid for and secure major infrastructure projects such as the $1.8 billion Mitcham-Frankston Freeway in Victoria.

“As at 30 September, work in hand stood at $10.0 billion and since then the Group has been awarded $1.7 billion worth of new work in Indonesia and a consortium including Thiess and John Holland has been chosen as the preferred proponent to develop the $1 billion Lane Cove Tunnel in Sydney. These projects, and the significant momentum that is being provided by the upswing in civil engineering and building construction in Australia, are providing the Group with a very positive outlook,” said Mr Adamsas.

Leighton Notes are expected to be rated ‘BBB-’ (by Standard & Poor’s) and will pay a fixed interest rate, which will be based on a margin above the 5 year swap rate on the date of issue. The initial margin will be determined following a bookbuild process to be conducted on 27 and 28 October 2003.

Leighton intends to apply for quotation of Leighton Notes on ASX.

Full details of the offer will be contained in the prospectus, which is expected to be lodged with ASIC next week following the completion of the bookbuild. Applications for Leighton Notes can only be made by completing an application form contained in, or accompanying, the prospectus during the offer period. The prospectus will be available, after lodgement, at www.leighton.com.au.

It is expected that the offer will open on 6 November 2003 and close on 1 December 2003.

Holders of Leighton ordinary shares, with a registered address in Australia on the register as at 7:00pm on 20 October 2003, will shortly receive a postcard from Leighton which outlines how they can obtain preferential treatment over general public applicants, if there is excess retail demand for Leighton Notes.

Deutsche Bank AG and Macquarie Equity Capital Markets Limited are the Joint Lead Managers to the Leighton Notes offer.

Issued to the ASX by:
Leighton Holdings Limited
A.C.N. 004 482 982 A.B.N. 57 004 482 982

For further information:
MR DIETER ADAMSAS
Deputy Chief Executive Officer & CFO
Ph: (02) 9925 6923