The bonds' average margin was 20 basis points above the interest rate of corresponding Israeli government bonds, half the 40-basis point margin in IEC's previous bond issue.
IEC issued three bond series: NIS 1.5 billion in the Series 23 bond, bearing a fixed interest rate, which will be redeemed on July 10, 2013; NIS 1 billion in the CPI-linked Series 24 bond, which will be redeemed in 2013-15; and NIS 500 million in the Series 25 bond, bearing a fixed interest, which will be redeemed in 2013-17.
IEC raised NIS 1.5 billion at an interest rate of 3.03%, in its previous bond issue in April 2012.
IEC's bond issue were made against the backdrop of the utilities' financial difficulties, due in part to reductions in natural gas deliveries. Gas deliveries from Egypt have halted altogether, and deliveries from Yam Tethys, owned by Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL), have fallen to a fifth of the contractual amounts. IEC says that it will need an extra NIS 10 billion a year to purchase more expensive diesel and heavy fuel oil. The use of these alternative fuels has sharply pushed up electricity and the utility is demanding an immediate 30% rate hike.
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments