The Israel Discount Bank (TASE: DSCT) board has given its approval for a hybrid capital issue, through the private placement of deferred hybrid capital notes. The notes will form part of the bank’s original capital, subject to conditions, once the Bank of Israel has given its approval.
The amount to be raised in the issue and the related terms, including the interest rate, will be determined in accordance with market conditions, and the sum to be raised shall not exceed 15% of the bank’s original capital, i.e. NIS 1 billion.
Discount Bank said that it would initially make a private placement, mainly to institutional investors, following which the capital notes would be listed for trading on the Tel Aviv Stock Exchange (TASE). The bank expects to file its draft prospectus for the listing of the capital notes by the end of May 2007, so the second public stage of the offering is not likely to begin until the middle of the year.
The offering will dilute Discount Bank’s registered equity by 400 million shares. The state, which holds 25% of the bank, has given its consent in principle to the increase in registered capital, provided that the additional capital will be used solely for the aforementioned purpose and nothing else.
Published by Globes [online], Israel business news - www.globes.co.il - on December 11, 2006
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