Israel Corporation raises NIS 700 million in private placement of bonds
Both series are linked to the CP; Nir Gilad about to take over as CEO in the stead of Yossi Rosen
The Israel Corporation (TASE: ILCO) raised NIS 700 million through expanding two series of bonds yesterday.
The company, controlled by Sammy and Idan Ofer, expanded series 6 and 7 of its bonds, by NIS 350 million each, and placed the debt with institutional investors.
The series 6 bonds are linked to the consumer price index and will be repaid in five equal installments from 2012 to 2016. Until being registered for trade, the bonds bear 4.2% interest; afterwards the rate drops to 3.9%.
The series 7 paper is also linked to the consumer price index and will be repaid in five equal installments from 2017 to 2021. Until being listed for trade the bonds bear 4.5% interest, falling to 4.2% afterwards.
The two series differ in duration, the longer being nine years
In March the company raised NIS 1.4 billion through the two series, which are both rated AA/Stable by Maalot.
Its private placement was handled by a consortium including the underwriting companies of Poalim IBI, Leumi & Co, Clal Finance, Harel and Epsilon.
In other The Israel Corporation news, this week Nir Gilad, formerly the accountant-general at the Finance Ministry, replaces Yossi Rosen as CEO. Gilad has been working alongside Rosen for the past year.
For the first quarter of 2007 The Israel Corporation reported netting NIS 166 million, a drop of 32% against the parallel quarter of 2006.
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