Bank Hapoalim (LSE: BKHD; TASE: POLI) Turkish subsidiary Bank Pozitif Ve Kalkinma Bankasi Anonim Sirketi (Bank Pozitif, formerly C Kredi Ve Kalkinma Bankasi Anonim Sirketi) has raised $125 million from international banks. The bank will use the funds to finance its customers’ business activity.
The raising of finance was carried out in the first syndication deal in Turkey in 2007, and it was twice oversubscribed with brisk demand from banks worldwide. 26 international banks participated, among them Deutsche Bank, BNP Paribas, and ABN Amro, as well as two other Israeli banks, Israel Discount Bank (TASE: DSCT) and Mizrahi Tefahot Bank (TASE:MZTF).
The deal was transacted under dual tracks for periods of a year and two years. It will bear LIBOR interest plus 0.45% in the first year and 0.85% in the second year. Bank Pozitif expressed satisfaction with the high subscription rate and its success in being the first bank to complete a syndication deal in Turkey this year. Bank Hapoalim closed the acquisition of Bank Positif in October 2006. It paid $100 million for a 57.55% stake in the Turkish bank, whose previous controlling shareholder C. Factoring will continue to own the rest.
In a separate development, Bank Hapoalim announced today the appointment of Avi Levi, 40, as manager of Bank Hapoalim’s branches in the UK. Levi previously served as manager of infrastructure, tourism and capital markets in the banking services division. Bank Hapoalim has branches in London and Manchester, offering banking services to customers with connections to Israel, local private banking services, and credit facilities in cooperation with other banks.
Published by Globes [online], Israel business news - www.globes.co.il - on February 19, 2007
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