Bank Hapoalim raising NIS 3b

Bank Hapoalim branch  credit: Aviv Gottlieb
Bank Hapoalim branch credit: Aviv Gottlieb

The bank is offering two series of CoCo bonds, one of which is for 25 years, and 12-month commercial paper.

A few days after reporting a record annual profit, Bank Hapoalim is striking while the iron is hot and raising over NIS 3 billion via two different debt instruments: CoCo (contingent convertible) bonds of up to 25 years, and 12-month commercial paper.

Yesterday evening, Bank Hapoalim completed the institutional stage of the CoCo bond offering through expansion of two existing bond series. One of the series matures in 25 years. The bank also issued 12-month commercial paper for the first time. Total demand was over NIS 5 billion. Distribution was led by Leader Capital Markets.

There was high demand for the two CoCo bond series, of which the bank decided to fill NIS 1.17 billion. On the long bond, the spread over government bonds with similar terms was 1.62%, while the spread on the shorter bond was 1.28%. The commercial paper offering also met with high demand, of which the bank decided to fill NIS 1.9 billion, with a spread of 0.09% over the Bank of Israel interest rate.

The public stage of the offering is scheduled for Thursday. The CoCo bonds will be included in the bank’s tier 2 capital, and will facilitate further growth in the bank’s business as well as strengthening its capital base for an extended period.

After the financial crisis of 2008, CoCo bonds became a widespread means of raising capital for banks. They behave like conventional bonds, but at a time of crisis become convertible to equity, helping to boost the issuing bank’s liquidity.

Published by Globes, Israel business news - en.globes.co.il - on March 5, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.

Bank Hapoalim branch  credit: Aviv Gottlieb
Bank Hapoalim branch credit: Aviv Gottlieb
Ashot Ashkelon credit: Ministry of Defense Up 250%, Ashot Ashkelon wins another Defense Ministry order

The Israeli defense company's share price has risen 250% in the past three years since FIMI Opportunity Funds acquired control.

Liad Agmon credit: Eyal Izhar Liad Agmon steps down from Insight Partners to found startup

Serial entrepreneur Agmon has served as a partner at Insight Partners Israel alongside Daniel Aronovitz who set up the Israel office.

Shekels credit: Shutterstock Vladerina32 Shekel slide resumes amid escalating tariff war

The Bank of Israel is not expected to intervene in the forex market despite the sharp depreciation of the shekel.

Nir Zuk credit: Inbal Marmari Palo Alto Networks mulls buying AI security co for $700m

Sources inform "Globes" that on Palo Alto's radar is Protect AI.

President Donald Trump hosts Prime Minister Benjamin Netanyahu credit: Reuters Kevin Mohatt Israeli officials confident on US tariff concessions

Senior Israeli figures believe that concessions could be tied to progress on strategic regional political issues that are important to President Trump.

Phoenix Investment House CEO Avner Hadad  credit: Tommy Harpaz "The market has priced in all the bad things"

Phoenix Investment House CEO Avner Hadad says US markets could continue to fall, but that we are close to interesting territory for patient investors.

Tel Aviv credit: Shutterstock Tel Aviv slips in World's Wealthiest Cities ranking

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

Leviathan platform  credit: Albatross C'ttee seen recommending no cut in gas exports

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

Accountant General Yali Rothenberg credit: Rafi Kutz Israel's fiscal deficit continues to narrow

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Arkia credit: Arkia Arkia cuts Tel Aviv - New York April fares

Arkia has cut fares at the last minute, a time when prices usually soar even higher, according to the pricing method used in the industry.

Bank of Israel Governor Prof. Amir Yaron credit: Dani Shem Tov Knesset Spokesperson BoI Governor: US tariffs could push up inflation in Israel

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

US President Donald Trump and Prime Minister Benjamin Netanyahu April 7, 2025  credit: Avi Ohayon, Government Press Office Netanyahu fails to persuade Trump to remove tariff on Israel

Asked by reporters whether Israel would be exempted from his tariffs policy, US President Donald Trump replied, "Maybe not. Don’t forget we help Israel a lot."

FBI to investigate Nakash Group Israel CEO

The complaint against Avi Hormaro was filed with the FBI offices in Miami, Florida, where many of the group's companies are incorporated, "Globes" has learned.

Bank of Israel credit: Shutterstock Israel's forex reserves fell in March

Israel’s foreign exchange reserves at the end of March 2025 fell to $218.821 billion, a decrease of $1.433 billion from their level at the end of February, the Bank of Israel reports.

Bank of Israel Governor Prof. Amir Yaron credit: GPO BoI keeps rate unchanged, cuts growth forecast

The Bank of Israel is concerned about inflation, the escalation of the war in Gaza, which has raised Israel's risk premium, and the turmoil on global markets set off by the trade war.

Eilat Ramon Airport Credit: Sivan Farag Eilat Municipal Spokesperson Russian airline to kick-start int'l flights from Eilat's Ramon airport

Russian airline Red Wings is to launch direct flights between Eilat's Ramon airport and Moscow and Sochi in Russia starting June 12.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018