A senior investment manager told "Globes" that the interest on the bonds did not reflect the risk entailed.
Israeli businessman Natan Hetz, the controlling shareholder in real estate company Alony Hetz Property and Investments Ltd. (TASE: ALHE) yesterday began raising NIS 1 billion in bonds in order to replace bank debt with public debt. In the first stage of the offering, Alony-Hetz was asking to raise NIS 400 million, however, demand ultimately only reached NIS 271 million and the offering was closed at the minimum price of NIS 1,179 per package.
It seems that due to the failure of the offering, the underwriters were forced to buy products in order to increase demand and it is unclear how much the underwriters bought and how much the public bought.
A senior capital market investment manager told "Globes" that he chose not to participate in the offering (like many other investment managers) because the offering was conducted without securities and the interest did not reflect the risk entailed in the investment.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2016
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Nathan Hetz