Institutional investors stampede for developer David Azrieli's bonds
Supergas borrowing NIS 600 million from investors
Institutional investors are storming for developer David Azrieli's bonds.
Supergas, which is controlled by Granite Hacarmel, which the Canadian builder bought from the Borovich family, saw the demand and decided to raise 50% more than initially sought.
The company will be borrowing NIS 600 million from investors, rather than NIS 400 million.
Within three months, Azrieli has tapped Israel's institutional investors for NIS 1.3 billion through private placements to various companies he controls.
The Supergas bonds, which closed the tender at 4,.9% interest, received an Aa-1 rating from Midroog.
Supergas carried out the private placement through a special company that it wholly owns. The company will be concentrating Supergas' provision of cooking gas to households, and some of its commercial marketing in containers.
The subsidiary will be using the funds to repay bank credit and loans that it received from parent company Supergas, as working capital, and to finance expansion.
Ami Sagis, chairman of Supergas and CEO of Granite Harcarmel, stated that the funds would enable the group to diversify its debt structure and finance expansion, while also locating new business opportunities in Israel and abroad in all its areas of business.
Supergas will also continue to consider entering the infrastructure sector, Sagis said.
Azrieli also raised NIS 715 million in March through his company Kanit Management Investment and Finance, to build the third - the square - tower of his Azrieli complex of skyscrapers in the heart of Tel Aviv, right off the Ayalon highway. The complex already has its round tower and the triangular one.
That placement had also been oversubscribed and Azrieli elected to increase it by NIS 115 million, from the original target of NIS 600 million.
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