The issue was oversubscribed three-fold. Proceeds will be used to recycle existing debt.
Arison Holdings Ltd. subsidiary Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) has raised NIS 820 million in a private placement of bonds. The company originally offered institutional investors NIS 300 million in CPI-linked bonds, and increased the offering in the face of NIS 1 billion in demand.
Midroog Ltd. rated the bonds A2. They will carry 5.2% interest, the minimum interest offered. Poalim IBI Underwriting and Investments Ltd. (TASE:PIU) led the offering.
Housing and Construction CEO Uri Shani said this was the largest bond offering ever held by the company on the Israeli capital market, and was a positive sign of the company’s recovery. “The success of the offering is a vote of confidence by the capital market in the company’s business results and in the ability of the company’s management in implementing its strategic plan.”
The company said proceeds would be used to recycle existing debt.
Published by Globes [online], Israel business news - www.globes.co.il - on April 18, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007