Israel Chemicals Ltd. (TASE: CHIM), controlled by Ofer Brothers through Israel Corp. (TASE: ILCO), has obtained $725 million in credit from a syndicate of 17 European, US, and Israeli banks.
This is the largest loan ever given by a foreign banking syndicate to an Israeli company.
The credit is for five years and bears LIBOR + 0.45% interest. Israel Chemicals will use the new credit to repay an existing $250 million five-year loan, which bears LIBOR + 0.6% interest, which the company took out in 2005. The company will also use the loan to finance its $352 million acquisition of Supresta LLC, which is due to be closed shortly. Finally, the loan will provide financing for future business opportunities.
The new loan, its low interest, and the large number of participating banks reflect Israel Chemicals’ strong standing in international financial markets.
Published by Globes [online], Israel business news - www.globes.co.il - on August 7, 2007
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