IDB Development, controlled by Eduardo Elsztain, yesterday successfully raised NIS 236 million in the preliminary stage of an offering of its new Series 15 bonds. Epsilon Underwriting, a subsidiary of the IDB-Discount Investment Corporation group, led the issue. In yesterday's auction for institutions after the end of trading on the Tel Aviv Stock Exchange (TASE), demand totaled NIS 665 million, and the company filled the orders to the greatest possible extent. The interest rate for the bond series in the auction was set at 4.7%.
The new Series 15 bonds will be secured with a senior lien on 10.4% of the shares in Clal Insurance held directly by IDB Development, which have a current value of NIS 305 million. By the beginning of next May, IDB Development will have to sell 5% of the shares in Clal Insurance that it holds, and is required to reduce its holding in Clal Insurance to less than 5% by the beginning of September 2020. Half of the bond principal will therefore be repaid at the end of September 2020, and the other half at the end of June 2022.
Before today's public auction stage in the offering after the end of TASE trading, IDB Development published a list of bond purchasers in the auction for institutions, which consisted mainly of mutual funds, portfolio management companies, hedge funds, and nostro players. The list of purchasers was headed by More Investment House, which bought Series 15 bonds for NIS 25.8 million, mostly for the mutual funds that it manages. Next on the list of purchasers were the Noked Capital fund, managed by Roy Vermus and Shlomi Bracha, and portfolio management company Shekef Maof Investments, with NIS 24 million and NIS 22 million, respectively.
Other large purchasers in the issue included Yelin Lapidot (NIS 19.4 million), Harel Pia (NIS 17.7 million), Psagot (NIS 15.8 million), and Alfi Benedek Investment Management (NIS 14.5 million). The proceeds from the offering will help IDB Development fully repay its Series 11 and Series 13 short-term bonds, amounting to NIS 485 million, at the end of November (principal and accrued interest).
Published by Globes, Israel business news - en.globes.co.il - on November 18, 2019
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