Africa Israel raises $129m in bond sale to institutions
Lev Leviev's real estate developer expected to raise a toal of 775 million shekels when sale opens to public.
Israeli real estate developer Africa Israel Investments said on Thursday it raised 467 million shekels ($129 million) in a bond offering to institutional investors.
The company, controlled by billionaire diamond dealer Lev Leviev, said it expects to raise a total of 775 million shekels after the sale is open to the public in the next few days and when options are exercised.
Africa Israel mall in Romania (Photo: AFI Europe)
In the offering, Africa Israel sold a new series of five-year bonds, which will be repaid between 2018 and 2023. The bonds are rated "A3" by Midroog, the Israeli affiliate of Moody's Investors Service.
Africa Israel said the new series will go towards paying down older debt – principal and interest.
Abraham Novogrocki, chief executive of Africa Israel, said strong demand from institutions showed confidence in the moves the company has been making to improve its capital structure.
The company was hit hard by the real estate meltdown in the United States, Russia and eastern Europe. It defaulted on a series of bonds and in 2010 restructured some $2 billion of its debt.
