Arrow Missile Engine Maker Tomer Seeks $130 Million in Debt Financing

Tomer, a state-owned defense company that manufactures engines for the Arrow 3 and Arrow 4 missile systems, is planning a significant financial move to fund expansion. The company intends to raise at least 300 million shekels (approximately $80 million) by the end of the year, with an approved ceiling of 500 million shekels (approximately $130 million) from institutional investors. This fundraising effort, reported by Calcalist, will be conducted through institutional bonds, a model previously used by Rafael Advanced Defense Systems.

The move aims to provide crucial capital for growth without making Tomer a publicly traded company or forcing it to disclose sensitive operational information. The urgent need for expanded production capacity stems from record sales, including equipping the Israel Defense Forces and a major deal to sell Arrow systems to Germany for approximately $7 billion.

Tomer, a key subcontractor for Israel Aerospace Industries and Elbit Systems, has already achieved sales of about 850 million shekels (approximately $225 million) this year, exceeding its original targets by roughly 150 million shekels. Established about a decade ago as part of the privatization of Ta'as to retain rocket propulsion knowledge within the state, Tomer currently employs around 1,000 people.

According to the company's five-year plan, approved by the Government Companies Authority, Tomer aims to reach sales of approximately 1.8 billion shekels (around $480 million) and increase its workforce to 1,400 employees by 2030.