Bank Leumi Grants Liam Engineering Six-Month Extension on Harish Project Financing

Bank Leumi has granted Liam Engineering Group an additional six months to meet the financing conditions for its "Liam Village - Harish Ma'of" project in Harish. The extension pushes the deadline for fulfilling the requirements to open credit lines for the project's second phase from November 1, 2026, to May 1, 2027. This decision follows the company's report last Friday that it had failed to meet the terms of its banking agreement, which had exposed it to the possibility of Bank Leumi demanding immediate repayment of NIS 75 million in credit already provided.

The extension temporarily alleviates the immediate concern of such a demand due to missing the original deadline, but it does not guarantee further credit will be drawn. Key conditions yet to be met include achieving pre-sale targets for apartments and settling betterment levies. The Harish project encompasses 153 apartments, approximately 15,000 square meters of office space, and about 9,000 square meters of retail space.

According to the company's latest financial report, only 17 apartments had been sold by August, though significant marketing for the entire project had not yet commenced. The company estimates that an additional NIS 328 million in investment is required to complete the project. In May 2025, Liam Engineering raised approximately NIS 115 million through its first public bond offering. Prior to the latest report, its bonds were trading at a gross yield to maturity of about 17%, reflecting investor concerns about the associated risks.

The extension provides the company with more time to advance apartment sales and fulfill the necessary conditions for continued banking support, but it does not ensure the opening of credit lines or the project's completion as planned.