High demand for AFI Residences debt offering

Demand in the institutional tender was more than five times the amount that the company planned to raise.

Africa-Israel Investments Ltd. (TASE:AFIL) unit Africa-Israel Residences Ltd. (TASE:AFHS) has successfully completed the institutional tender in the expansion of its Series B bond.

In the institutional tender, unnamed investors placed provisional commitments to buy NIS 544 million worth of bonds. Out of the provisional commitments submitted, Africa-Israel Residences accepted provisional commitments to buy NIS 152 million worth of bonds at NIS 1,141 per par value of NIS 1,000, reflecting an effective yield of 2.15%.

The final price will be set in the public tender, which will be held tomorrow. The Series B bond, which will be redeemed in 2014-20 and has a duration of 3.8 years, has been given an A2 rating with a "Stable" outlook by Midroog Ltd..

Barak Capital Underwriting Ltd. managed the offering, along with Clal Finance Underwriting Ltd., Menorah Mivtachim Underwriting and Management Ltd., Excellence Nessuah Underwriting Ltd., Leader Underwriters Ltd., and Leumi Partners Underwriters Ltd.

Africa-Israel Residences CEO Oren Hod said, "The company will use the proceeds from the offering, among other things, to carry out additional deals, while continuing to consolidate its leading position in the Israeli residential real estate market."

Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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