Delek energy units raise $2b in debt on TASE

Demand for the offering totaled $13.5 billion - 650% oversubscribed.

Delek Group Ltd. (TASE: DLEKG) energy units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) successfully completed their international debt offering on the Tel Aviv Stock Exchange (TASE), raising $2 billion. Demand for the debt offering totaled $13.5 billion - 650% more than offered.

Foreign investors, including top US and European private equity funds, banks, and energy majors, placed more than $10 billion in offers. Israeli institutions placed more than $3 billion in offers. The foreign investors were allotted 70% of the offering - $1.35 billion, and the Israeli investors were allotted 30% of the offering - $650 million.

"This is an unprecedented vote of confidence by the US, European, and Israeli capital markets in Avner, Delek Drilling, and Delek Group's vision. Development of the Leviathan gas field will make it possible to continue the Israeli natural gas revolution and regional and global exports, which will greatly strengthen Israel's geopolitical position," said Avner CEO and Delek Drilling chairman Gideon Tadmor.

Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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