Menora Mivtachim Insurance and Ayalon Insurance signed an agreement yesterday (Tuesday) with the founders of Keren Yesodot, under which the companies will provide a convertible debt of up to NIS 250 million to a financing company to be established alongside the existing funds. The company will be issued by Menora and Ayalon from the nostro funds.
Keren Yesodot was established in late 2014 by three founders, former bankers – Esti Friedman, Yaakov Siso and David Baruch – as a fund that specializes in providing financial assistance for residential construction. The fund operates in cooperation with insurance companies Capital, sales law policies and other guarantees. Over the years of its operation, the fund has completed five rounds of raising NIS 5 billion and has accompanied more than 300 projects with an emphasis on specialization in the field of urban renewal.
The agreement stipulates that Ayalon and Menora will flow to the foundations of the convertible debt to shares amounting to up to NIS 250 million, without warranty or mutual guarantee between them, in equal parts. In addition, Ayalon and Menora will also provide sales law guarantees and policies Of a financing company will allow the fundamentals to leverage through senior bank financing.The leverage is expected to generate a high return on investment for shareholders.
Ayalon Insurance Company has a portfolio of assets managed to the tune of NIS 10 billion, including a real estate portfolio of NIS 1 billion. The portfolio includes 12 real estate assets in the field of housing clusters, offices and parking lots. The group’s assets are managed by its subsidiary Eyal Zvi. Ayalon Investments is managed by Tamir Hershkovitz.
Yehuda Ben Assayag, CEO of Menora Mivtachim Insurance: “This transaction is part of increasing the company’s activity in the field of sales law guarantees, an area that we believe will bring great economic value to the company while exposing it to the growing field of residential real estate. We are happy to do this with partners with proven experience in the field. “
Sharon Reich, CEO of Ayalon Insurance: “Ayalon’s connection to the real estate market and real estate financing is natural and long-standing. Ayalon strives to initiate new transactions in recognition of the high profit bearing that the field brings with it, and investing in fundamentals expresses this aspiration well. I congratulate the founders Next. “
Chairman of Foundations, Mr. David BaruchSaid, “The collaboration with two skilled institutional bodies in the real estate field will enable the company to provide a broad and improved response to entrepreneurs seeking to diversify their sources of funding through non-bank financing.”