Adama Agricultural Solutions Ltd. (formerly Makhteshim Agan) has raised NIS 527 million in a private bond placement. The agrochemicals company expanded its Series D bond, and will use the proceeds to recycle debt and finance current operations, including future acquisitions.
Adama said, "The placement is another step in the financial structure of the company, which has diverse activities across the world. The bond issue was well received by institutional investors, which placed strong demand in the tender.
Clal Finance Underwriting Ltd. led the private placement. Adama will issue bonds at NIS 488 million par value for a total of NIS 527 million, a price of NIS 108 per NIS 100 par value, giving a yield of 2.64%. The unlinked shekel bond has a duration of 1.72 years and will be redeemed in three years. Standard & Poor's Maalot Ltd. rates the bond A+.
China National Chemical Corporation (ChemChina) owns 60% of Adama and IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) owns 40%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2014
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