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The Jerusalem Post
The Jerusalem Post: Business and Innovation

Mekorot completes successful financing round for water sector development

 
Amit Lang, CEO of Mekorot (photo credit: MEKOROT)
Amit Lang, CEO of Mekorot
(photo credit: MEKOROT)

Mekorot, the national water company of Israel, completed the institutional stage of raising tradable bonds.

Mekorot, Israel’s national water company, completed Monday the institutional stage of raising tradable bonds through a Series 11 expansion. As part of the institutional stage, the company received high demand totaling NIS 2.1 billion, 2.8 times the amount of the planned financing round, of which NIS 1.27 billion was raised, subject to the approval of the rating company.

As part of the offering, the company offered investors index-linked bonds with a duration of approximately 12.4 years, the repayment of whose principal will be made in equal installments (except for the latter) until 2053. The bonds are rated AAA by S&P Maalot on a stable horizon.

Amit Lang, Mekorot’s CEO: “The financing round will enable Mekorot to continue its intensive investment program for the development of the water sector, which is especially needed these days, which includes, among other things, the expansion of infrastructure for agriculture in the southern communities and the Gaza envelope, while maintaining the company’s financial strength.”

Yitzhak Aharonovitch, Chairman of the Board of Directors: “The debt raising is a vote of confidence by the investing public in the company. Mekorot will continue to develop the water sector for the benefit of the needs of the economy and all consumers.”

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Last November, Mekorot reported its financial results for the third quarter of 2023, indicating double-digit growth in revenues, an increase in EBITDA, and continued implementation of the investment plan of NIS 1.2 billion during the first nine months of 2023, in accordance with the three-year investment plan for the construction and operation of water facilities totaling NIS 1.5 billion annually. 

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