IEC employees in action. The market believes in the company and the demand for bonds is large (Photo: ShutterStock)
Against the background of last Friday's electricity disruptions, and looking forward to another Friday, which is expected to be particularly hot, here is a bit of a refreshing breeze for the Israel Electric Corporation, which last night successfully completed the institutional stage of issuing two new series of index-linked bonds (Series 2 and Series 34). As part of the offering, there was high demand totaling NIS 35.3 billion.
In Series 3, the company raised NIS 34.1 billion at an index-indexed yield to maturity of 2.2 percent and a spread of 48.1 percent over CPI-indexed government bonds.
In Series 34, the company raised NIS 35.1 billion at an index-indexed yield to maturity of 4.2% and a spread of 66.1% over CPI-indexed government bonds.
Meir Spiegler, earlier this week in Eilat. Thinks the high demand is indicative of investors' confidence in the company (Photo: Yod Photos)
Meir Spiegler, CEO of the company: "The impressive demand from investors indicates full confidence in the Israel Electric Corporation, its stability and its operational and financial conduct."
Shlomo Arviv, Chairman of the Finance Committee of the Israel Electric Corporation's Board of Directors: "Even at a time when there is great volatility in the bond markets in a high interest rate environment not seen in a decade, investors choose to participate in the company's debt raising and in practice express confidence in the company's management and the policy implemented by it."
Leading institutional investors in the local capital market participated in the offering, and strong demand totaling NIS 3.3 billion was received. The public tender stage will take place this Sunday (11.06.2023).
The bonds are rated ilAAA by S&P degrees on a stable horizon and Aa1.il on a stable horizon by Midroog. The issuance of the series of bonds was carried out in accordance with the shelf prospectus published by the Company in May 2021.
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One of the chimneys at the Orot Rabin station in Hadera. Among the goals for which the IEC is raising the money: completion of new current generators at the station (Photo: official website, IEC Spokesperson's Office)
Why does the electric company need money?
The Company's updated financing needs for 2023 were created against the background of expected bond repayments, the spread of fuel debt recognized to the Company by the Electricity Authority over several years, and the continuation of the investment program in the transmission and distribution segments and the establishment of new HFAs at the Orot Rabin site.
The IPO process was led by the company's Finance Division, headed by CFO, Gilad Hasid, CPA, and Director of Finance Eyal Hermony, together with the Legal Unit and the Investor Relations Unit, accompanied by Shmuel Gortler of Goren Capital and Adv. Yehuda Aharoni and his team from Herzog Fox & Neeman Law Offices.
The distributors of the offering are IBI Underwriting and Issuance Ltd. and Discount Capital Underwriting Ltd.
- Our Money
- Financing rounds and IPOs
- Israel Electric Corporation
- Meir Spiegler