Israel Corporation (TASE: ILCO) Peru-based subsidiary Inkia Energy Inc. plans to raise more than $300 million in a bond issue on Wall Street within a few months. Sources believe that the bond issue is the first part of a process toward an IPO in about a year.
Israel Corp. declined to comment on the report.
Israel Corp. established Inkia Energy in 2007 on the basis of its acquisition of the Latin American energy operations of Globeleq for $543 million. Inkia now owns several power plant companies in Latin America, and is headquartered in Lima. In Peru, the company generates 40% of the country's electricity.
Inkia also has operations in Bolivia, El Salvador, Panama, Jamaica, and the Dominican Republic. It accounts for less than 5% of Israel Corp's total net asset value (NAV).
Israel Corp's share price fell 0.7% in morning trading to NIS 4,400, giving a market cap of NIS 34.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011