The Dan Region Association of Towns Sanitation and Waste Disposal Board plans to raise up to NIS 1.3 billion through a first offering of private bonds on the capital market, in order finance the investment and development plan of the Dan Region waste water treatment system, "Globes" has learned. So far, the Association has used bank finance only.
The Association has approached several underwriters to manage the offering, planned for this April. The fund raising round will through an offering of a bond series totaling NIS 350-500 million, to be expanded in future offerings in accordance with the Association's needs, up to NIS 1.3 billion. The Association has applied to S&P Maalot for a rating for the bonds to be issued, which will probably be rated A.
The Dan Region Association of Towns Sanitation and Waste Disposal Board is a statutory body set up to manage the collection, transport, and purification of waste water for the cities and local authorities in the Dan region. Its debt currently amounts NIS 401 million, of which NIS 131 million is long-term credit. The remaining NIS 270 million is short-term credit renewing annually. The Association plans to repay this credit with the proceeds of the bond issue.
Last month, Israel Aerospace Industries, which is also government owned, raised NIS 1.2 billion in a bond offering. Demand for the bond was NIS 3.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2013
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