Dexia Israel raises NIS 160m

The bank will seek to raise a further NIS 40 million from the public on Sunday.

Despite the freeze on capital markets, and after a one-day delay, Dexia Israel Bank Ltd. completed the institutional tender stage of raising marketable deposits, in which it obtained commitments from investors to the tune of NIS 235 million. The bank approved NIS 160 million, because it is authorized to raise only 80% of the amount stated in the prospectus, NIS 200 million, at the institutional stage.

The commitments received are for expansion of the 'D' series of marketable deposits, at a yield of 4.53% and a duration of three years. This is not the expansion of a normal bond series, but of marketable deposits that enjoy redemption status equal to that of the bank's deposits, which makes them the most secure form of debt the bank can raise.

Dexia is due to offer the rest of the sum to be raised, NIS 40 million, to the public this Sunday. The tender is led by Clal Underwriting, Leumi Partners (formerly Leumi & Co.), Excellence Underwriting, and Africa Underwriting.

Dexia Israel, managed by David Kapah, recently released fourth quarter financials that showed an 8.6% rise in quarterly profit compared with the corresponding quarter of 2007 to NIS 17.6 million. Dexia Israel has an AA rating with a stable outlook from S&P Ma'alot.

Published by Globes [online], Israel business news - - on February 26, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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