This is the first issue by a municipal water and sewage corporation in Israel since the government decided to privatize the water and sewage market in September 1992.
Meniv Rishon (the water and sewage corporation of Rishon LeZion) has raised NIS 90 million in a private placement. This is the first issue by a municipal water and sewage corporation in Israel since the government decided to privatize the water and sewage market in September 1992.
Meniv Rishon was founded in 1994. All of the Rishon LeZion municipality's water related responsibilities and obligations were transferred to Meniv Rishon in early 2002. It will receive all of the municipality's water assets by the end of 2005, in exchange for 50% of share capital and an owners loan amounting to 50% of the assets.
To guarantee full repayment of the principle and interest, Meniv Rishon will grant a lien on its assets, the rights to its accounts, the rights to its contract with the Rishon LeZion municipality, and the right to an insurance policy in favor of the bondholders. Meniv Rishon will also establish an NIS 6.3 million debt service fund and a NIS 5.4 million fund to finance excessive operating expenses.
Published by Globes [online] - www.globes.co.il - on December 6, 2004