Mizrahi Tefahot Bank Raises NIS 4.3 Billion in Oversubscribed Offering

Mizrahi Tefahot Bank successfully completed a significant capital raise, attracting demand of approximately NIS 6.8 billion against its initial target of NIS 2.8 billion. The offering, which included three series of bonds: short-term bonds (Na'am), shekel bonds, and deferred commitment certificates linked to the consumer price index, saw overwhelming interest from institutional investors.

Due to the strong demand, the bank decided to increase the amount raised in the institutional phase to approximately NIS 4.3 billion. For the Na'am series, demand reached about NIS 1.6 billion, with the bank raising NIS 1 billion at a spread of 0.02% above the Bank of Israel's interest rate. The shekel bond series attracted bids totaling around NIS 4 billion, and the bank issued NIS 2.5 billion at a spread of approximately 0.50% above comparable government bonds.

The deferred commitment certificates, indexed to inflation, received bids of about NIS 1.2 billion, with the bank raising NIS 0.75 billion at a spread of roughly 0.81% above comparable indexed government bonds.

Mizrahi Tefahot CEO Moshe Lari stated that the heightened interest from institutional entities reflects the market's strong confidence in the bank and its access to relatively inexpensive and readily available funding sources for its diverse needs. Rosario Capital led the offering, facilitated by Mizrahi Tefahot Securities Ltd.