The offering will be through private placements, probably of ten-year bonds.
Israel Electric Corporation
(IEC) (TASE: ELEC.B22
) is preparing to raise NIS 8 billion ($2.3 billion) over the next two years from Israeli investment institutions. On Wednesday, the utility published a tender to pick bond trustees for the offerings. The bids will be ranked by the payment that the trustee will ask for each NIS 1 billion raised.The offering will be private placements, probably of ten-year bonds. IEC will use the proceeds to recycle current debt, and will not increase it. It says that is due to repay NIS 19 billion (in bank and non-bank credit and bonds (interest and principal) over the next two years.
IEC’s debt totals NIS 74 billion, including NIS 56 billion in financial debt (credit and bonds). It predicts that the financial debt will shrink to NIS 50 billion by 2015, because of the improved cash flow following the arrival of natural gas from the Tamar field and the keeping of the electricity rate at 30% above the rate before the Egyptian gas crisis in 2011.
In December 2013, Moody’s reaffirmed IEC’s international credit rating, and upgraded the outlook from “Negative” to “Stable”.Midroog Ltd. also upgraded its outlook for IEC’s TASE-listed bonds.
Published by Globes [online], Israel business news – www.globes-online.com