Hapoalim raises $1b in green CoCo bond placement

Dov Kotler

The issue in accordance with the ICMA's Green Bond Principles is the first of its kind in Israel.

Bank Hapoalim (TASE: POLI) reported on Friday that it had completed the pricing in an international private placement with financial institutions of contingent convertible bonds (CoCo) amounting to $1 billion. Demmand for the bonds totaled $2.6 billion.

The bonds are for a maximum period of 10.25 years and bear annual interest of 3.255%.

In order to diversify the bank's investor base and optimize its capital structure, Bank Hapoalim the bonds in accordance with the Green Bond Principles of the International Capital Markets Association (ICMA), the first issue of its kind in Israel. The bank will use the proceeds of the offering to finance environmentally friendly projects in renewable energy, green transport, green construction, waste recycling, and energy efficiency.

The bonds will be listed for trading by institutions on the Tel Aviv Stock Exchange.

The placement was managed by Barclays, JP Morgan, Citi, Morgan Stanley, Jefferies, and Israel distributor Poalim IBI.

Bank Hapoalim CEO Dov Kotler said, "The high demand for the placement represents further evidence of the bank's leadership and of the great confidence that it merits on international financial markets. The capital raised will enable the bank to continue its trend of accelerated growth and to optimize the management of its capital.

Published by Globes, Israel business news - en.globes.co.il - on October 17, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018