NewMed Energy Raises NIS 1.75 Billion in Bond Offering Amid Strong Demand

NewMed Energy has successfully completed the institutional phase of its new bond series offering, attracting bids totaling approximately NIS 2.4 billion. The partnership decided to accept orders amounting to NIS 1.75 billion. The finalization of the fundraising is contingent upon the public tender results and obtaining necessary approvals.

The new bond series is slated for trading on the Tel Aviv Stock Exchange, featuring an annual interest rate of up to 4.54% without indexation or collateral. The principal will be repaid in installments between 2027 and 2034, with an average maturity of about five years. NewMed intends to secure an A1 rating for this series from Midroog.

The primary purpose of this fundraising is to expand financing sources for upcoming investment plans. These include the development of Leviathan field's second phase and advancing the Aphrodite field, which is nearing a final investment decision. A portion of the proceeds will also be used for debt repayment.

This offering occurs as NewMed prepares for significant capital expenditures related to the ongoing development of its gas assets. The expansion of the Leviathan field aims to increase production capacity for both domestic sales and exports. Similarly, the Aphrodite project is a key focus for the coming years, making increased liquidity and diversified financing crucial for NewMed's capital structure.

NewMed Energy CEO Niv Sarna stated that the institutional tender results reflect the confidence of institutional bodies in the partnership and its strategy. He added that the offering proceeds, combined with strong cash flow from Leviathan, will enable the company to continue its development plans, including Leviathan phase two and Aphrodite, while also returning capital to investors and maintaining an appropriate leverage level. CFO Tzachi Hachusha emphasized that the successful fundraising and high demand underscore the capital market's trust in NewMed Energy's financial stability and execution capabilities, enhancing financial flexibility and creating an efficient, balanced capital structure for long-term value creation.