this story is by
Avi Bar-Eli
The Israel Electric Corporation completed a NIS 1.5 billion debt placement on Friday. The bonds, sold to local and foreign institutional investors, are backed by the government and pay relatively low interest of 3.03% annually, which is only 0.39% more than short-term government bonds (makams ). Total demand had been NIS 2.7 billion. The company is in financial straits, although you wouldn't know it from that interest rate. S&P Maalot placed the IEC on its watch list for a potential downgrade since the sale would increase its debt without helping it find a long-term solution.
