NewMed Energy Raises Billions in Bond Offering

NewMed Energy, an energy company owned by billionaire Yitzhak Tshuva, announced Thursday the successful completion of the institutional phase of a new bond series, attracting substantial demand totaling 2.4 billion shekels. The new bond series, amounting to approximately 1.751 billion shekels, will be listed on the Tel Aviv Stock Exchange. These bonds will carry an annual interest rate of up to 4.54% and are unsecured and unlinked to any index.

The bonds are structured for proportional repayment starting in 2027 through 2034, with an average maturity of about five years. The funds raised are intended to diversify the company's financing sources and support its upcoming work plans. These plans include the development of Leviathan field's second phase, advancing the Aphrodite field development, which is nearing a final investment decision, and debt repayment.

NewMed Energy CEO Niv Serner stated that the institutional tender results demonstrate clear confidence from institutional bodies in the company and its business strategy. He added that the proceeds, combined with strong cash flow from the Leviathan field, will enable continued progress on development plans for Leviathan phase two and Aphrodite, alongside investor returns and maintaining appropriate leverage.

Tsachi Havusha, Deputy CEO and CFO of NewMed Energy, commented that the successful fundraising and high demand reflect the capital market's trust in the company's financial stability and execution capabilities. He noted that this fundraising enhances financial flexibility and creates an efficient, balanced capital and debt structure, enabling long-term value creation for investors.