Israel Discount Bank (TASE: DSCT) will try to raise NIS 200 million in an issue of deferred notes next week. The bank is due to issue two series of deferred notes in order to strengthen its upper Tier-2 cpaital.
Discount Bank will expand its current Series 4 Deferred Note and will issue a new Series 9 Deferred Note. Standard & Poor's Maalot Ltd. has given the deferred notes an A+ rating with a "Negative" outlook. Discount Bank unit Discount Underwriting and Issuing Ltd. is handling the offering.
The offering will improve Discount Bank's capital adequacy ratio, which was 11.49% at the end of June, and subsequently rose to 12.08% after the bank raised capital in July and August. The Bank of Israel mandates a minimum capital adequacy ratio of 12% from the end of 2009.
Discount Bank CEO Giora Ofer said, "The bank built a format to reach the capital adequacy ratio target by the end of 2009. The moment the markets made it possible, the bank worked hard and achieved the target during the third quarter. In the future, we'll ensure a capital adequacy ratio that will enable the implementation of our business plan, with the regulator's capital threshold as a minimum."
Discount Bank has raised NIS 1.5 billion since January.
Discount Bank's share rose 1.3% in morning trading to NIS 7.31, giving a market cap of NIS 7.08 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2009
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