Israel Aerospace Industries raises NIS 1.2b

The NIS 1 billion bond offering was over-subscribed three-fold.

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) raised NIS 1.2 billion in debt today, after its NIS 1 billion bond offer was over-subscribed three-fold. Most of the debt was raised from investment institutions and the rest from the public.

Due to the high demand, the interest rate on the bond was set at 4.1%, 0.8% higher than the yield on corresponding government bonds with the same duration of 7.5 years. The first interest payment on the bond, which receive an AA rating with a "Stable" outlook, will be in July.

IAI CEO Joseph Weiss said, "The impressive success of the offering reflects the capital market's confidence in the company and its business soundness."

The revival of the TASE bond market, exemplified by IAI's offering, is also seen in a smaller offering. Prashkovsky Investments and Construction Ltd. (TASE:PRSK) raised NIS 50 million in debt and Isras Investment Co. (TASE: ISRS) raised NIS 108 million. Earlier this week, agrochemicals maker Makhteshim Agan Industries Ltd. raised NIS 678 million and Avgol Nonwoven Industries Ltd. (TASE:AVGL) raised NIS 137 million.

Published by Globes [online], Israel business news - - on January 10, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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