As part of the institutional stage, the Company raised NIS 285 million

The institutional tender for a new series of bonds (Series 21) was locked at an interest rate of 1.8%, compared with a maximum interest rate of 2.7% that the Company offered to investors

Tomer Katz, VP of Investments and Business Development of ILDC: "The high demand in the institutional tender, including the leading institutional bodies in Israel, alongside the low interest rate determined, reflects the investors' expression of confidence in ILDC and its management, and we are thankful for that. The current round of financing will lead to significant savings in the Company's financing expenses and will enhance a series of steps that we have taken in recent years, in order to reduce financing expenses, to increase ILDC's financial flexibility and to strengthen the Company's capital structure. I believe that the continued implementation of the financial strategy alongside the development of the company's significant growth engines in the coming years will continue to bring significant value to the debt holders and the company's shareholders”.

ILDC has successfully completed the institutional stage of the issue of debentures of a new series (Series 21) with an over-demand of 4 times the original planned capital raise. In its original plan, the company sought to raise NIS 280 million at the institutional stage of the issue, while in practice it recorded a much higher demand, amounting to more than NIS 1 billion. The Company has chosen to raise NIS 285 million at the institutional stage, with the public stage scheduled to take place in the upcoming days.

In addition, due to the high demand for credit, the interest rate at the institutional stage was set at 1.8%, compared with an annual interest rate of approx. 2.7%, which was initially offered to the investors.

The Series 21 debentures are linked to the Consumer Price Index, secured by a second lien on the Seven Stars Mall in Herzliya, and are rated ‘ilA-‘ by S & P with stable outlook. The duration of the series is about 8 years.
It should be noted that the Seven Star Mall has undergone significant improvement in recent years, the value of the mall is currently NIS 1.05 billion, and the annual NOI is NIS 74 million. The consideration to be raised in the current issue will be used mainly to replace existing debt in the amount of NIS 247 million.
About two months after its entry into the TA-90 index, ILDC reported that Menorah Mivtachim is becoming an interested party in the company. 

Menorah reached a holding of about 5.59% of the shares of ILDC, which represents 2.8% of the voting rights in the company, following an acquisition of ILDC's shares in the sum of NIS 11 million, as reported by Menorah to the company.

In addition, the Menorah Mivtachim Group holds debentures (Series 20) issued by ILDC in the amount of NIS 26 million par value.

ILDC is currently traded at a market value of NIS 960 million, after rising 72% since the beginning of the 2017 to NIS 34 per share.
"ILDC completed a number of actions in recent years that have improved the coverage and leverage ratios. In the next two years a gradual improvement in coverage ratios is expected to be continued, following actions to increase EBITDA and stability in financial expenses

Maalot indicates that implementation of the company's business plan, will enable further improvement of the Company's financial position.

The credit rating company, Maalot S&P, raised today the rating of ILDC from 'ilBBB+' to 'ilA-' 'with a stable outlook. The raise is due to a number of actions taken by the Company in recent years, which led to continuous improvement in its financial risk profile as reflected in improving coverage ratios and leverage, such as an increase in NOI of major rental properties in Israel and Poland, reducing administrative expenses, selling assets and deleveraging, sales of assets which their process of maturity was completed and are not part of the core businesses and continuing of improvement of the Company's assets in Israel that will increase the capital base.

Maalot notes that the Company has carried out actions that have resulted in increasing of cash flow including the sale of apartments in Poland and the sale of a number of historical lands at market prices. In addition, ILDC has, in recent years, refinanced expensive loans of over NIS 1.5 billion, which resulted in reducing financial expenses.

As a result of these actions, Maalot estimates that, in so far as the company will continue to implement its business plan to continue to perform similar operations, there will be further  improvement in its financial position. Moreover, Maalot estimates that in the next two years a continuing gradual improvement in coverage ratios is expected, following continuing actions to increase the EBITDA and stabilize financial expenses. In addition, continuing gradual improvement in leverage ratios is expected, due to actions to stabilize the level of debt and increase capital base.

Maalot S&P also noted in its considerations, that "rating is positively influenced by successful adoption of financial policy that is committed to maintaining present leverage rate. The stable outlook reflects our expectations for stability in the financial ratios and in the business risk profile in the coming year. ILDC's policy of maintaining high cash balances over a course of time, contributes to its financial flexibility. Also, ILDC enjoys additional financial flexibility due to the great amount of lands it owns in Israel, some of which are realized every year in accordance with its business strategy. "