REIT 1 Ltd. (TASE:RIT1), Israel's first income-producing real estate investment fund, raised NIS 137 million yesterday from investment institutions and the public in an expansion of the company's series 3 bond issue.
REIT 1 planned to raise NIS 110 million, but because of the high demand in last week's institutional tender, which was repeated in the public tender, the firm expanded the offering to NIS 137 million.
REIT 1 offered 125 million bonds in packages of 1,000 plus 200 warrants exercisable until June 21, 2012. The price was set at NIS 1,096 for the package, giving a yield of about 3.1%.
If the warrants are fully exercised, they will bring REIT 1 further NIS 27.8 million.
The offering was underwritten by a consortium comprising Excellence Nessuah Underwriting, Clal, Poalim IBI, DS Apex, Leumi Partners, Barak Capital, Rosario, Meitav, and Union Capital Markets.
REIT 1 chairman Dror Gad said, "We are proud to have completed another successful fund raising round. The high response by investment institutions and the public seeking to participate in REIT 1's offering demonstrates that this is a sound and successful investment instrument."
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2012
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