Yitzhak Tshuva's NewMed Energy Raises $630 Million in Bond Offering

NewMed Energy, an energy company owned by billionaire Yitzhak Tshuva, announced Wednesday it has completed a new bond offering, raising NIS 2.4 billion (approximately $630 million) in total demand. The company successfully completed both the institutional and public phases of the offering for its Series B bonds.

The new bond series, totaling approximately NIS 1.751 billion, will be listed on the Tel Aviv Stock Exchange. The bonds will carry an annual interest rate of up to 4.54% and are not indexed or secured. Repayment will be in installments starting in 2027 and concluding in 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 include the development of Leviathan field's second phase, advancing the Aphrodite field development, which is nearing a final investment decision, and repaying debt.

Following the institutional phase, NewMed Energy CEO Niv Sarna stated that the results demonstrate clear trust from institutional investors in the company and its business strategy. He added that the proceeds, combined with strong cash flow from the Leviathan field, will enable continued development of projects like Leviathan phase two and Aphrodite, while also returning investment to shareholders and maintaining appropriate leverage.

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