Bank Mizrahi-Tefahot Raises NIS 4.3 Billion in Institutional Offering
Bank Mizrahi-Tefahot raised NIS 4.3 billion in its institutional offering after receiving robust market demand totaling NIS 6.8 billion across three different financial series.
Bank Mizrahi-Tefahot successfully completed a major public offering on Tuesday, raising approximately NIS 4.3 billion during the institutional phase following exceptionally high market demand.
Originally planning to raise NIS 2.8 billion across three separate series — short-term notes (Makam), shekel-denominated bonds, and consumer price index (CPI)-linked subordinated notes — the bank faced overwhelming interest from institutional investors, with total demand reaching about NIS 6.8 billion.
Breakdown of the Offering Series
For the Makam (Series 7) short-term notes, demand surged to approximately NIS 1.6 billion. The bank ultimately raised NIS 1 billion during the institutional phase, at a margin of 0.02% above the Bank of Israel interest rate.
For the shekel-denominated bonds (Series 74), demand reached roughly NIS 4 billion. Mizrahi-Tefahot raised NIS 2.5 billion in this series during the institutional phase, at a margin of about 0.50% above comparable government bonds.
For the CPI-linked subordinated notes (Series 73), demand hit approximately NIS 1.2 billion, with the bank raising NIS 0.75 billion at a margin of about 0.81% above comparable index-linked government bonds.
Bank CEO Moshe Lari commented on the strong market response:
«The heightened interest of institutional bodies in the offering testifies to the high confidence that Mizrahi-Tefahot enjoys in the capital market, and to the bank's extensive accessibility to relatively available and cheap sources of funding for its diverse needs.»
The offering was led by Rosario Capital and executed through Mizrahi-Tefahot Issuance Company Ltd.
