Discount Bank completes sale of Cross-Israel Highway debt
23.03.2010, 18:32
Israel Discount Bank (TASE: DSCT) has completed the sale of its senior debt for financing the Yitzhak Rabin Highway (Highway No. 6), also known as the “Cross Israel Highway”. Midroog Ltd. gave the NIS 565 million debt an AA rating. Demand was NIS 1 billion.
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Discount Bank sold part of a senior debt lent by a syndicate to Derech Eretz Highways Management Corp. Ltd., which holds the franchise for building and operating the Cross Israel Highway.
The investment institutions who bought the debt have the same status of the existing members of the syndicate, including all guarantees on the debt. Interest on the bonds will be paid twice a year; the interest paid is the base interest plus the spread. The bonds bear an effective interest rate of 5.84% up to June 30, 2014. The interest rate on the subsequent period will be determined in the future.
Israel Discount Capital Markets & Investments Ltd. and Epsilon Investment House Ltd. handled the sale. The debt was for financing the central section of the Cross Israel Highway.