Spokesman Office 19 February 2009
For the past six years, Mekorot has consistently maintained an AAA/Stable rating, the highest rating of Maalot S&P
Mekorot National Water Company Chairman Eli Ronen and CEO Ido Rosolio: "Mekorot yesterday held a successful offering of bonds to institutional investors in the amount of NIS 650 million. The offering was carried out through the expansion of two previously issued series of CPI-linked bonds, which are rated by Maalot – Standard & Poor’s Ltd. AAA with a Stable outlook".
The first expanded series of bonds has a maturity of seven years and bears an interest rate of 4.2%. The second expanded series has a maturity of 12.7 years and bears an interest rate of 5%.
Rosolio emphasized that the offering was over-subscribed and that the interest rates set were below the maximum established in the offering.
Rosolio noted that the proceeds of the offering are intended to finance the development of the water economy and to repay company debt. The offering was led by Mekorot CFO Avie Geffen and Treasury Unit Manager Lina Levy-Dragucki, via three underwriters: Poalim IBI - Underwriting & Issuing Ltd., Leumi & Co., and Apex Underwriting & Issue Management Ltd.
For the past six years, Mekorot National Water Company has consistently maintained an AAA/Stable rating, the highest rating of Maalot S&P. During this period, the company has raised NIS 4 billion in seven separate bond series to institutional investors.
Mekorot Chairman Eli Ronen noted that the stability in the company’s credit rating over the years was testament to the company’s financial soundness and financial management. “Mekorot’s strength is its engineering know-how and vast experience accumulated over the 72 years of its existence. There are also the company’s network of infrastructures, streamlining measures undertaken in recent years, the use of innovative and technologies, and the openness to the world,” Ronen added.
Rosolio noted that Mekorot is embarking on a number of major projects, including the construction of the Fifth Line to Jerusalem, construction of the desalination facility in Ashdod with a capacity of 100 million cubic meters a year, the linking of the desalination facilities along the coastline with the national water system, which is now being upgraded, and other projects aimed at increasing the supply of water in the current crisis conditions.
For further information: Hila Izhak, Mekorot Spokeswoman, 03-6230705, beeper - 53552