Bank Leumi (TASE: LUMI) successfully raised NIS 2 billion in an offering of deferred notes on Thursday. Investment institutions bought most of the notes in the offering, which was oversubscribed with NIS 3.4 billion in orders.
Bank Leumi expanded two current bond series. It expanded the Series 12 Bond by NIS 1.08 billion at a fixed interest rate of 2.6%. The ten-year bond, linked to the Consumer Price Index (CPI), will be repaid in September 2017. The yield is 2.9%. The bank also raised NIS 860 million in a new bond, Series 14. The ten-year CPI-linked fixed-interest bond matures in November 2020. Its yield is 3.4%.
Bank Leumi subsidiary Leumi & Partners Underwriters Ltd. led the offering, joined by Discount Underwriting and Issuing Ltd., Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), Clal Finance Underwriting Ltd., Excellence Nessuah Underwriting Ltd., Menorah Mivtachim Underwriters and Management Ltd., and Apex Underwriting and Issue Management Ltd.
Bank Leumi's share price rose 2% by midday today to NIS 11.76, giving a market cap of NIS 17 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2011
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