Israel Electric Corporation (IEC) raised NIS 1.6 billion in the institutional stage of an offering of two bond series (28 and 29) on Thursday. Demand amounted to NIS 5 billion. Because of the high demand, IEC increased the amount raised to NIS 1.6 billion. The public stage of the offering will take place Monday, March 27.
In the series 28 bond, IEC raised some NIS 500 million with a yield to maturity of 1.45%, representing a margin of 0.67% above the equivalent government bond. In the series 29 bond, IEC raised NIS 1.1 billion with an index-linked yield to maturity of 2.02%, representing a margin of 1.51% over a linked government bond.
The bonds are rated AA by S&P Maalot and Aa2 by Midroog, with a stable outlook.
IEC chairman Yiftah Ron-Tal said, "The success of the offering is another vote of confidence by the investment institutions in Israel in the responsible and conservative financial management of Israel Electric Corporation, and in the company's financial stability. The proven ability of the company's management to direct complex and challenging processes in a dynamic, changing, complicated and unstable environment, at the start of the era of competition, is impressive. The rating companies expressed confidence in the way the company is run and in their ratings for us, and the investors read the map correctly and accordingly did not hesitate to invest on an impressive scale."
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017