Israel Aerospace Industries (IAI) completed an extremely successful public offering of bonds totaling about $317 million (USD), issuing a new series of Shekel-based and unlinked bonds with a fixed interest rate. The extent of demand during the auction reached about $846.5 million (USD).
The final rate of interest was 4.1 percent, reflecting a gap of 0.8 percent above the yield of government bonds of the same average maturity. The small gap is unusual for the Israeli capital markets during the last few years.
Dov Baharav, IAI's Chairman of the Board, said: "this successful offering reflects the investors' trust in our solid strategy and expresses confidence in the quality of the technology and systemwide solutions we provided to our customers. The investors were convinced that IAI has competitive advantages in areas where it operates and the ability to maintain them longterm, despite many challenges. I would like to take this opportunity to thank IAI's management and employees whose devotion and professionalism assure the company's growth".
"The impressive bond issue demonstrates the capital market's recognition of IAI's financial strength and business robustness" said Joseph Weiss, IAI's President and CEO. "This strength is the result of the hard work of IAI's employees and managers since its establishment 60 years ago. We will continue to lead IAI to additional achievements, facing the different challenges before us, and contribute to the security of the state of Israel and improvement of its economy." "We thank the investors and all those involved" concluded Weiss.
"The amount issued is very impressive, since it is the largest offering conducted during 2012 in the Israeli capital markets. This is the third time the company has issued bonds and this is the largest of the three. The company's financial ratios and the transparency with which it operates creates the trust and confidence of the investors in the company" said CFO Eyal Younian.
The bond series received an "AA/ stable" rating from the Ma'alot - S&P rating agency, with an average maturity of 5.7 years.
The successful bond offering was led by Clal Finance Ltd., Leader Capital Markets Ltd., Leumi Partners and Barak Capital.
In the pictures
Dov Baharav, IAI's Chairman of the Board
Joseph Weiss, IAI's President and CEO
For further information, please contact:
Deputy Corporate VP for Communications
Tel: 972 (3) 935-8509
Fax: 972 (3) 935-8512