Oranim al ha-Yam Raises 600 Million NIS in Debut Tel Aviv Bond Offering
Oranim al ha-Yam completed its first bond offering on the Tel Aviv Stock Exchange, raising 600 million NIS. The funds will refinance bank debt as its luxury assisted living project in Rishon LeZion enters the occupancy phase.
Oranim al ha-Yam, a wholly owned subsidiary of the Oranim Group controlled by Menachem Oren, has completed its first bond offering on the Tel Aviv Stock Exchange (TASE), raising 600 million NIS. This is a significant financial move for the company, designed to refinance debt and repay financial obligations to banking corporations, as its flagship project enters the initial occupancy phase.
The capital raising was carried out through Series A bonds, carrying an annual interest rate of 4% linked to the Consumer Price Index. The bonds are secured by a lien on the company's assisted living project and commercial center in Rishon LeZion. The offering was led by Barak Capital Underwriting and Discount Capital Underwriting, accompanied by the law firms Ardinst, Ben Nathan, TolDano & Co. and Lichtenstein, Levy, Ben Sheetrit & Co.
The Flagship Resort-Style Project
At the heart of the move is the Oranim al ha-Yam project, located on the first line to the sea on the Rishon LeZion beach and marketed under the "RESORT LIVING" concept. The project is designed for adults aged 60 and over, aiming to offer a luxury residential experience at a high hotel standard. The project is currently in the initial stages of occupancy, which gives the financing move additional significance for the company.
The complex includes 270 assisted living housing units in two buildings ranging from 7 to 8 floors, alongside a nursing ward and a parking lot. In addition, on the ground floor along the beach promenade, approximately 4,950 square meters of commercial space are spread out, forming part of the asset serving as collateral for the bond issuance.
Transition to Capital Market Financing
From the company's perspective, the fundraising allows for a transition from debt taken for activity financing and project construction to financing through the capital market, with the bonds providing a new financing framework alongside the commencement of operations and occupancy. The fact that this is a 600 million NIS fundraising through a dedicated company holding a single central project makes the move particularly significant for the Oranim Group.
Shira Oren Nechmias, Deputy CEO of the Oranim Group, stated:
«The company is pleased with the positive response and sees the success of the fundraising as a significant expression of trust by institutional bodies in the management team and the strategy we are leading.»
She added that Oranim al ha-Yam is in the midst of the occupancy process and that they are proud to lead a unique luxury project for the 60+ demographic, offering an exceptional standard of living and quality of life in Israel.
Group Background and Outlook
Founded in 1978, the Oranim Group is managed by its founder Menachem Oren, who has about 50 years of experience in the industry, alongside Deputy CEO Shira Oren Nechmias. The group engages in luxury projects in Israel and abroad, with prominent projects including the Royal Beach Towers in Tel Aviv, the Sea Twins, and the Pearl of the Sea, alongside additional projects in London.
For Oranim, the completion of the offering marks a significant entry into the local bond market and provides the company with an additional source of financing. At the same time, the start of the project's occupancy is expected to transform the asset from a venture in the construction stages into an active project, while the success of the debt fundraising reflects the interest shown by institutional bodies during the process.
