NewMed Energy Completes Bond Offering After Drawing 2.4 Billion NIS Demand
NewMed Energy completed its Series B bond offering with 2.4 billion NIS in demand, raising 1.751 billion NIS to fund Leviathan Phase B, Aphrodite, and debt repayment.
NewMed Energy, the energy company controlled by billionaire Yitzhak Tshuva, announced on Wednesday that it has successfully completed the public phase of a new bond offering, Series B, following the conclusion of the institutional phase. The energy firm attracted massive demand totaling 2.4 billion NIS.
The partnership's new bond series, valued at approximately 1.751 billion NIS, will be listed for trading on the Tel Aviv Stock Exchange. The bonds will carry an annual interest rate of up to 4.54% and are unlinked and unsecured. The bond terms include installment repayments starting in 2027 and running through 2034, with an average duration (Macaulay duration) of approximately five years.
The proceeds are earmarked for diversifying the partnership's financing sources and supporting the implementation of NewMed Energy's work plans for the coming years. These plans include the development of Phase B of the Leviathan reservoir, advancing the development of the Aphrodite reservoir — which is nearing a final investment decision — and debt repayment.
Following the completion of the institutional phase, Niv Sarona, CEO of NewMed Energy, stated: "The results of the institutional tender demonstrate a clear expression of confidence by institutional entities in NewMed Energy and its business strategy. The proceeds from the issuance, combined with the strong cash flow from the Leviathan reservoir, will enable us to continue advancing our development plans for the coming years, including the development of Phase B at Leviathan and the development of Aphrodite, alongside returning investments to investors and maintaining an appropriate level of leverage."
Tzahi Habusha, Deputy CEO and CFO of NewMed Energy, added: "The success of the capital raising and the high demand recorded during the process reflect the capital market's confidence in the financial resilience of NewMed Energy and its execution capabilities. Today's fundraising strengthens our financial flexibility and creates an efficient and balanced capital and debt structure that allows us to generate value for investors over time."
