Demand was NIS 3.75 million for an offering of NIS 400 million.
The bond offering by Israel Postal Company attracted demand of over NIS 1.5 billion from the institutions, 3.75 the amount actually raised of NIS 400 million. The interest rate set in the tender is 3.88% annually, index-linked, which compares with advance estimates of 4%.
The offering is mainly intended to improve the structure of Israel Postal Company's debt to the Accountant General, which stands at NIS 300 million, to diversify the company's sources of credit and cash flow, to finance the company's entry into the mobile telephony market as an MVNO, and to improve the Postal Bank's infrastructure. This is the company's first bond offering.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010
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