Israel Electric Corporation (IEC) (TASE: ELEC.B22) has successfully completed the expansion of two of its existing series of bonds: Series 28 of shekel-denominated bonds with a 3.2-year duration and Series 29 of index-linked bonds with a 6.8-year duration. The company raised NIS 2.9 billion with its expansion. The bond issue, which was aimed at refinancing the company's debt, was held as part of the IEC's regular business.
In view of the strong demand for the bonds, IEC's board of directors approved increasing the size of the issue from NIS 2 billion to NIS 3.3 billion.
IEC raised NIS 370 million in Series 28 bonds with a 0.91% yield to maturity and a 0.5% spread above the interest rate on government bonds, and NIS 2.52 billion in Series 29 bonds with a 1.35% index-linked yield to maturity and a 1.14% spread above the interrest rate on index-linked government bonds.
Leading Israeli capital market investment institutions took part in the bond issue, with demand totaling NIS 5.1 billion. The public stage of the auction will take place on Monday.
S&P Maalot rated the bond ilAA+ with a stable outlook, while Midroog rated them Aa2.il, also with a stable outlook.
S&P this week upgraded IEC's international credit rating from BB- to BBB, after which S&P Maalot upgraded IEC's issuer from ilAA to IlAA+, and removed it from the watch list with developing consequences. The rating forecast was a stable outlook.
IEC chairman Yiftah Ron-Tal commented, "The impressive success of the issue again shows the confidence Israeli investment institutions have in the strategic and financial decisions led by the board of directors, the financially responsible and conservative management of IEC's management, and the company's financial stability. IEC has been promoting a strategic plan for organizational change and streamlining in recent years, which will enable to company to continue leading the energy sector in an era of competition."
Published by Globes [online], Israel Business News - www.globes-online.com - on October 22, 2017
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