Bank Leumi (TASE: LUMI), managed by CEO Rakefet Russak Aminoach, announced completion of its auction for the sale of new bond series, including CoCo bonds with a loss absorption mechanism.
The auction for classified investors, managed by Leumi Partners Underwriters, was completed yesterday for a new CoCo bond issue, with oversubscription amounting to NIS 4.5 billion. The auction for investment institutions resulted in commitments totaling NIS 657 million being received (demand totaled NIS 955 million), while at least NIS 1.6 billion was raised in a new shekel bond series.
The auction for institutions for the Series 180 shekel bonds, rated AAA by S&P Maalot, was closed at a 2.02% interest rate, reflecting a 2.14% effective yield and a spread of 68 base points. The tender for institutions for linked CoCo bonds, rated AA, was closed at a 2.42% interest rate, reflecting a 2.54% effective yield and an effective spread of 250 base points.
Coco bonds are contingent convertible instruments that are converted to share capital if a stability event occurs. Leumi Card raised NIS 139 million last month in CoCo bonds, after having already raised over NIS 1 billion in ordinary bonds.
Published by Globes, Israel business news - en.globes.co.il - on January 29, 2019
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