Yoram Naveh, CEO of Clal Insurance and Finance (Photo by Sivan Poppy)
Tonight, Clal Insurance completed a successful move to replace a debt of NIS 400 million. The move is in fact an expression of trust in the company and the current management as the background noises concerning the company and its control intensify. At the same time, the Phoenix is raising a debt of NIS 300 million when Midroog confirmed the Aa3 debt rating.
Clal Insurance’s move was to replace Series G and Series H bonds. Bonds with an early maturity date of about one year and two years have been replaced with a Series 12 debenture with an early maturity date of about 9 years. The interest rate of the previous series was 2.32% index-linked (Series G), and an interest rate of 4.14% nominal (Series H) compared to the interest rate of the new series (Series X) which pays an interest rate of 2.5% nominal.
More in-
The Company accepted offers that constitute approximately 38% of the maximum amount of Series G bonds offered by the Company to purchase, and approximately 59% of the maximum amount of Series H bonds offered by the Company to purchase.
The exchange purchase offer joins the group’s previous IPO last August, in order to strengthen its equity. Last August, Clal Insurance raised a secondary capital of NIS 400 million, at an interest rate of only 2.5% nominal.
Yoram Naveh, CEO of Clal Insurance and Finance, stated: “This is another successful phase, joining significant capital actions we have taken aimed at improving the structure of the company’s liabilities. “We consider the agreement of the bondholders to extend the maturity of the bonds to a further period of another 9 years, at historically low real costs, to express another significant confidence in the capital market in general insurance and finance.”
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