The cheap money in the markets causes many bank raisings and expensive bond series swaps, and Torah Clal Insurance is saving interest rates successfully.
Tonight, the Clal Insurance and Finance Holdings Group completed a very successful exchange of bonds in the amount of NIS 300 million, with their early maturity dates in December 2022 Series H and December 2023 Series G, for bonds whose early maturity dates are about 9 years in March. 2030
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.
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.
For the 7th series, the company received demand in the amount of NIS 120 million, and chose to respond to NIS 103 million, about 86%.
Series H received requests in the amount of NIS 264 million, and the company chose to respond to NIS 206 million, approximately 78%.
This exchange purchase offer joins another successful previous IPO held by the Group last August, in order to strengthen its equity.
In August 2021, Clal Secondary Insurance raised 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.”