This week, Discount Bank completed a public offering of three debt series worth NIS 4.6 billion. The bank notes that this is the largest IPO ever in the domestic market.
Read more in Calcalist:
This is an issue of bonds (Series Ten) in the amount of NIS 3.1 billion with an average maturity (average life expectancy) of about six years and an effective margin of 0.80%; 0.23% above the Bank of Israel interest rate; As well as deferred promissory notes with a mechanism for absorbing losses of the COCO type (Series H) in the amount of NIS 580 million in a maturity of about six years, and at an effective margin of 1.86%.
The tender recorded high demand of NIS 5.8 billion, of which the Bank responded to NIS 4.6 billion.
Discount is making the move as part of the day-to-day management of capital and liquidity needs under the multi-year plan. The bank explains that the raising will strengthen the infrastructure for the accelerated growth strategy in the bank’s credit portfolio, which is also reflected in the results of the third quarter of 2021, which the bank published last week.
The move at Discount was led by the head of the Financial Markets Division, Assaf Pasternak, GT Division Manager Elad Fischer and Discount CEO Issuers Gad Bar-Lev. Razmovich.
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