As part of the institutional stage, the Company raised NIS 285 million
The institutional tender for a new series of bonds (Series 21) was locked at an interest rate of 1.8%, compared with a maximum interest rate of 2.7% that the Company offered to investors
Tomer Katz, VP of Investments and Business Development of ILDC: “The high demand in the institutional tender, including the leading institutional bodies in Israel, alongside the low interest rate determined, reflects the investors’ expression of confidence in ILDC and its management, and we are thankful for that. The current round of financing will lead to significant savings in the Company’s financing expenses and will enhance a series of steps that we have taken in recent years, in order to reduce financing expenses, to increase ILDC’s financial flexibility and to strengthen the Company’s capital structure. I believe that the continued implementation of the financial strategy alongside the development of the company’s significant growth engines in the coming years will continue to bring significant value to the debt holders and the company’s shareholders”.
ILDC has successfully completed the institutional stage of the issue of debentures of a new series (Series 21) with an over-demand of 4 times the original planned capital raise. In its original plan, the company sought to raise NIS 280 million at the institutional stage of the issue, while in practice it recorded a much higher demand, amounting to more than NIS 1 billion. The Company has chosen to raise NIS 285 million at the institutional stage, with the public stage scheduled to take place in the upcoming days.
In addition, due to the high demand for credit, the interest rate at the institutional stage was set at 1.8%, compared with an annual interest rate of approx. 2.7%, which was initially offered to the investors.
The Series 21 debentures are linked to the Consumer Price Index, secured by a second lien on the Seven Stars Mall in Herzliya, and are rated ‘ilA-‘ by S & P with stable outlook. The duration of the series is about 8 years.
It should be noted that the Seven Star Mall has undergone significant improvement in recent years, the value of the mall is currently NIS 1.05 billion, and the annual NOI is NIS 74 million. The consideration to be raised in the current issue will be used mainly to replace existing debt in the amount of NIS 247 million.