The infrastructure fund beam was required to offer extraordinary conditions to investors in order to complete a bond raising which it rejected about two weeks ago. The fund, whose chairman is Uri Yogevformerly CEO of the Government Companies Authority and head of the budget department, was required to complete the recruitment for the purpose of purchasing the controlling shares in the telecommunications infrastructure company Tamers Telecom, from the billionaire Poyo Zavdalovich.
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Against the backdrop of rising interest rates and the tendency of investors to stay away from unrated bonds, the small infrastructure fund was forced to offer investors a double-digit return, which caused it to reduce the amount it had raised to approximately NIS 80 million. This is despite the volume of demand in the offering was NIS 150 million.
The interest that Aloma will pay to the bond holders is 8.25%, and together with warrants for the company’s shares that were granted as part of the fundraising, the yield to maturity that investors see is 11.7%. This is interest that will be paid twice a year, in June and at the end of December, from 2023 to 2027. The fund will be repaid in five Annual payments are not equal, and 70% of the amount will be repaid at the final maturity date (June 2027).
Aloma’s report shows that a large number of hedge funds have identified an opportunity in the debt issuance, backed by a lien on Tamaras Telecom shares. Entities that participated in the fundraising include hedge funds such as Tulip Capital, Trio, Hatzim and Masterplan. In the prominent names is found Meir Shamirthe controlling owner ofShamir Insurance (through the Meir Shamir holding company).
Other buyers in the IPO are the agricultural produce marketer Bichuri Sade and the engineering infrastructure company for Sicho. Aloma intends to use most of the fundraising funds, 20 million dollars (NIS 68 million), to purchase 42% of Zabaldovich’s Tamers Telecom shares, in which Aloma already owns 40% of the shares.
The bond raising weighed on investor sentiment: Aloma shares fell by 23% in the last month to a price that represents a market value of only about NIS 120 million, significantly lower than its net asset value (NAV) of NIS 338 million. Since last year’s offering has been cut The stock at 53%. The raising was carried out at a high interest rate even though the Tamaras shares with an estimated value of NIS 250 million held by Aloma (82% of the capital after the purchase) were pledged for the benefit of the holders. The dividend that will arise from Tamaras will be deposited in a trust account for the purpose of paying off the bond.
In November of last year, Aluma raised NIS 80 million in an initial public offering of shares. In an interview with Globes, chairman Yogev stated at the time that “Aloma is focused on the sectors of communication infrastructure, green energy, transportation and environmental quality, and we think that it will be a fund worth billions of shekels in the future.”