Mizrahi Tefahot Bank Raises NIS 4.3 Billion in Bond Offering

Mizrahi Tefahot Bank successfully completed a significant bond issuance, raising approximately 4.3 billion shekels during its institutional phase. The offering saw strong demand, with initial investor bids reaching about 6.8 billion shekels, far exceeding the bank's original target of 2.8 billion shekels. Due to the high demand, the bank decided to increase the issuance size.

The funds were raised across three different series of bonds. In the short-term notes series, investors bid for 1.6 billion shekels, and the bank raised 1 billion shekels at a rate 0.02% above the Bank of Israel's interest rate. The shekel-denominated bonds series attracted bids of 4 billion shekels, with the bank raising 2.5 billion shekels at a rate approximately 0.50% above comparable government bond yields. The third series, linked to the consumer price index, received bids of 1.2 billion shekels, and the bank raised about 750 million shekels at a rate around 0.81% above comparable inflation-linked government bonds.

Moshé Lari, CEO of Mizrahi Tefahot Bank, stated that the substantial interest from institutional investors reflects a high level of confidence in the bank within capital markets, as well as its ability to access funding sources at relatively low costs suitable for its diverse needs. The issuance was led by Rosario Capital and executed by Mizrahi Tefahot Issuances Ltd.