© Sivan Farag, Clal Insurance PR
| Investing.com News |
Clal Insurance Company (TASE:), completed on Wednesday a bond raising in the institutional phase with high demand of approximately NIS 800 million (in straight bonds and convertible bonds).
The amount raised will be used to finance the purchase of the Max credit card company and to create a liquidity cushion and financial flexibility for the company.
The Board of Directors of Clal Insurance Business Holdings responded to the requests and decided to raise a total of approximately NIS 400 million from the aforementioned amount, of which approximately NIS 250 million in straight bonds with a nominal yield of approximately 4.7% and approximately NIS 150 million in convertible bonds with a nominal yield of approximately -2.6%
The exercise price of the bond is NIS 85 per share and is about 40% higher than the closing price of the stock on the stock exchange on Wednesday.
The 2 series are intended for repayment in about 5 years.
Clal Insurance’s share has decreased in the last 12 months by 18.4% and has increased since the beginning of the year by 2.5%. The stock is traded in the index at a price of NIS 60.65, which reflects the company’s market value of approximately NIS 4.5 billion.
Yoram Neve, CEO of Clal Insurance and Finance (pictured above):
“I am very happy about the high demand from the institutional bodies. This successful recruitment, despite the volatility in the markets, reflects another expression of confidence of the capital market in the Clal Insurance and Finance Group and in the transaction to purchase the Max company.”
The fundraising was led by Discount Capital.
