Tidhar Group Raises NIS 1.5 Billion in Bond Offering

The Tidhar Group, a major Israeli real estate developer, has successfully completed the institutional phase of its bond offering, raising NIS 1.5 billion. The company offered two series of bonds, Series A and Series B, and received commitments totaling NIS 2.1 billion, indicating strong demand. Series A, the shorter-term bond with a maturity of 5.6 years, raised NIS 1.1 billion at an annual interest rate of 2.68%. Series B, the longer-term bond with an 8-year maturity, raised approximately NIS 400 million at an annual interest rate of 2.99%. These rates represent a spread of about 1% over comparable indexed government bonds.

The funds raised will be used for the company's ongoing operations and debt refinancing. Leading Israeli institutional investors participated in the offering, signaling confidence in Tidhar's business strategy. Discount Underwriting and Leader Underwriting managed the issuance.

This offering follows a recent successful initial public offering by Tidhar. The company's CEO, Uri Levin, expressed gratitude to the institutional investors, emphasizing their renewed trust in Tidhar's strategy and its leading market position. Levin highlighted the company's growth across its construction, development, and income-generating sectors, noting its high profitability and competitive standing.

Levin's earlier public statements about a 20% drop in housing prices, which were later clarified to include inflation and a four-year period with financing incentives, had drawn attention. He has since expressed optimism about a market recovery.