How much does Africa Israel really owe you?

On Sunday, at 5 in the afternoon, one of the biggest debt arrangements in the annals of Israel's capital market will be hitting the road. That's when Africa Israel Investments, controlled by Lev Leviev, will be holding its first assembly of all the holders of its 13 series of bonds. The assembly will take place at Beit Hahayal in Tel Aviv and the participants are owed, together, about NIS 7.5 billion.

The meeting is the first step on a long road expected to take several months to be traversed, at the end of which is no jackpot, but rather new terms for Africa Israel to repay its mammoth debts.

During the assembly, Africa Israel representatives will report on the company's financial status. The participants will discuss appointing a joint representative for all the bondholders.

Last week, Africa Israel revealed that it has to reschedule its debts, because from 2011 it doesn't see how it can meet its liabilities. Right after that stunning announcement, the Finance Ministry published data on the exposure of Israeli pension funds to Africa Israel's bonds.

Perusal of those figures would have led you to think that Israel's pension savers (in regular pension funds, as well as in provident funds and in executive insurance schemes) aren't in bad trouble. Based on the treasury's figures, the biggest exposure is NIS 400 million from Psagot. The other seven big institutional investors are owed NIS 1.6 billion together.

That isn't so bad, relatively speaking. It's about the same amount as Leviev is believed to owe Bank Hapoalim alone.

It may be that Yadin Antebi, commissioner of capital market, insurance and savings at the Finance Ministry, chose to lowball Leviev's debt to Israel's pension savers, in order to prevent a panic. However, the manner in which the figures were presented is extremely subjective in nature. It does not represent the true picture.

Moments before the giant debt arrangement hits the road, TheMarker brings the true picture of just how exposed Israel's pension savers are to Africa Israel's bonds.

Africa Israel's debt is spread across no fewer than 13 bond series. Holders of those bonds are owed NIS 7.5 billion. According to figures from research firm Praedicta Solutions, savers in pension funds hold NIS 3.7 billion worth of Africa Israel bonds, in face value terms, which are worth NIS 4 billion in terms of actual liabilities to the pension savers. The market value of the Africa