Azrieli Group subsidiary Canit Management Ltd. today raised NIS 715 million in a bond issue. The bonds bear 4.8% interest. Demand was over NIS 1 billion. Maalot - The Israel Rating Company rated the bonds AA.
Half of the bonds will be redeemed in ten equal annual payments in 2007-16, and the other half will be redeemed in a single payment at the end of the period. The company said that proceeds from the offering would be used to develop Azrieli Group’s new and existing properties, including the Azrieli Center Square Tower, the Modi’in Center, and two office buildings in the Herzliya Business Park.
The Azrieli Group, owned by chairman David Azrieli, has officially initiated preparations for an IPO on the Tel Aviv Stock Exchange (TASE). During the road show for Canit Management’s bond issue, Azrieli Group executives predicted that the IPO would be held in late 2007 at a company value of $1.5-1.8 billion.
“Globes” recently revealed that Azrieli Group plans to carry out a comprehensive restructuring ahead of the IPO, which will include the consolidation of the real estate activities of two subsidiaries, Canit Management and Canit Hashalom Investments Ltd., and the real estate and high-tech activities of Granite Hacarmel Investments Ltd. (TASE: GRNT) will be split up. The restructuring will likely take several months, because of the complex tax and legal issues involved.
Azrieli Group’s main asset is its malls, including the Azrieli Center, the Ayalon Mall, the Jerusalem Mall, Negev Mall, Holon Mall, Margalit Hasharon Mall, the Modi’in Mall, and the Herzliya Business Park. The Modi’in mall is due to open late this year.
Published by Globes [online], Israel business news - www.globes.co.il - on March 21, 2007
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