developing· Economy· Updated
Generation Completes NIS 1.2 Billion Bond Raise for Shikun & Binui Energy Acquisition
The infrastructure investment fund Generation Capital has raised 1.16 billion shekels in the institutional phase of a new bond offering to finance its acquisition of Shikun & Binui Energy. The offering for the new Series E bonds received bids totaling approximately 1.6 billion shekels. Participating institutional investors included Harel, Migdal, The Phoenix, Menora, Ayalon, Analyst, and Yelin & Mor.
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What happened
- 01Generation Capital raised 1.16 billion shekels in an institutional bond offering to finance its acquisition of Shikun & Binui Energy.
- 02The bond offering received bids totaling 1.6 billion shekels from major institutional investors including Harel, Migdal, and The Phoenix.
- 03The acquisition of Shikun & Binui Energy is valued at 4.45 billion shekels and is expected to close in 2027.
- 04Bank Hapoalim provided a 2.2 billion shekel credit line to Generation Capital to facilitate the purchase.
- 05The new Series E bonds are unsecured, CPI-linked, carry a 3.48% interest rate, and are rated A+ by S&P Maalot.
- 06The transaction requires regulatory approvals from the Israel Competition Authority and the Public Utility Authority before completion.
The unsecured, CPI-linked bonds carry an annual interest rate of 3.48% and have been assigned an A+ rating with a stable outlook by S&P Maalot. Repayments are scheduled in ten installments between 2030 and 2039, with annual interest payments starting in December 2027. The public phase of the offering is expected to occur in the coming days.
The acquisition of Shikun & Binui Energy is valued at 4.45 billion shekels and was agreed upon in late July. To facilitate the purchase, Generation Capital also secured a 2.2 billion shekel credit line from Bank Hapoalim on Tuesday. The transaction is expected to close in 2027, pending regulatory approvals from the Israel Competition Authority and the Public Utility Authority.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: TheMarker. Read TheMarker’s originalThe coverage
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