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Israel Electric Corporation
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IEC raises $500M in US bond placement
Placement to be completed Friday with 6.7% interest rate for 5 years. Corporation seeks funds to purchase solar to replace Egyptian gas
Israel Electric Corporation (IEC) has raised half a billion dollars in a bond placement for institutional investors in the United States, Calcalist learned Tuesday.

 

According to IEC, the placement was to be completed Friday at a relatively high 6.7% interest rate for a period of five years. The company had previously held a series of placements in 2011, whereby it raised approximately $4 billion in debt at a 30% lower interest rate than the current placement.

 

The company reported that demand amounted to some $3.5 million – seven times higher than the total placement value. Investors from around the world participated in the placement, most of them Americans and Europeans.

 

Barclays Bank and UBS guided the placement while Herzog, Fox & Ne'eman from Israel and Arnold & Porter from the US represented IEC.

 

"This placement, held as disruptions at Egypt's gas supply effect the company's cash flow, teaches us about faith and the recognition global markets have in the company and in its robustness, financial stability and ability to raise capital," said IEC Chairman Yiftach Ron-Tal.

 

IEC CEO Eli Glickman added that his company places great importance on its ability to access global markets. "This step is an important step in improving the company's cash flow," he remarked.

 

This report was originally published in Hebrew by Calcalist

 

 


פרסום ראשון: 02.10.12, 07:27
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