The Lottery Corporation has priced an inaugural AU$800m ($576m) Australian Medium Term Note issuance to diversify its debt funding and support its extended Victorian public lottery licence.
The transaction comprises two equal tranches of senior unsecured fixed-rate notes issued through wholly owned subsidiary L&K Finance.
The first AU$400m tranche has a six-year term, carries an annual coupon of 6.326% and will mature on 15 September 2032. The second AU$400m tranche has a ten-year term, pays 6.825% annually and matures on 15 September 2036.
Settlement is scheduled for 15 September 2026, subject to customary closing conditions.
The Australian lottery and Keno operator said proceeds would be used for general corporate purposes, including financing the extension of its Victorian Public Lottery Licence. The 40-year extension takes the licence’s expiry to June 2068 and requires an upfront payment of AU$1.15bn to the Victorian Government.
The Lottery Corporation described the note offering as part of its broader capital-management strategy. It expects the transaction to diversify its sources of funding and provide additional balance-sheet flexibility for its long-term requirements.
Commenting on the development, CFO Adam Newman stated: "We are pleased with the strong support received from domestic and offshore debt investors for The Lottery Corporation’s inaugural AMTN issuance.
"The transaction provides access to an important additional funding market, further diversifies our sources of debt capital and supports the long-term funding requirements of the business.”
The financing follows The Lottery Corporation’s FY2026 results, which showed a 2.7% decline in FY2026 revenue to AU$3.58bn and a 22.1% fall in statutory net profit to AU$284.6m following weaker jackpot cycles.
The group is also preparing for the retirement of Non-Executive Director Harry Boon in October. Separately, it has allegedly supported proposed federal restrictions on foreign-matched lotteries, while rival The Lottery Office alleges the measure would further concentrate the Australian market.
Tags: Financial, Lottery, Q3, Legal and Regulatory
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The transaction is The Lottery Corporation’s first issuance in the Australian Medium Term Note market
