Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) yesterday completed the public tender in its bond offering on the Tel Aviv Stock Exchange (TASE), raising NIS 450 million altogether. The public phase of the offering was oversubscribed.
The unlinked shekel bonds bear 4.95% interest, lower than the interest rate set in the institutional tender two days ago. The bonds will be redeemed in 2015, 2016, and 2017.
In order to reduce exposure to the shekel-dollar exchange rate, IAI plans to hedge the proceeds of the offering. Most of the company's revenue is in dollars. Standard & Poor's Maalot Ltd. gave the Series 2 Bond an AA rating with a "Stable" outlook.
IAI received orders for NIS 385 million in the institutional tender of the Series 2 Bond, at an interest rate of 5.05%.
IAI has NIS 1 billion in bonds on the TASE.
Clal Finance Underwriting Ltd., Poalim IBI Underwriting and Issuing Ltd. and Leader Underwriters (1993) Ltd. led the offering.
Published by Globes [online], Israel business news - www.globes-online.com - on November 5, 2009
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