Tidhar Group Raises 1.5 Billion NIS in Successful Institutional Bond Offering
Tidhar Group has raised 1.5 billion NIS in the institutional stage of its bond offering, drawing 2.1 billion NIS in total bids. The capital raised will fund ongoing operations and debt refinancing.
The Tidhar Group, one of Israel's largest and leading real estate conglomerates, has successfully completed the institutional stage of its bond offering, raising 1.5 billion NIS. The company, which recently drew public attention following statements by its CEO Uri Levin regarding housing prices, experienced high demand from institutional investors, with total bids reaching 2.1 billion NIS for two new bond series (Series A and Series B).
The bonds were secured at annual interest rates of 2.68% and 2.99%, representing a spread of approximately 1% over CPI-linked government bonds of similar duration. The public stage of the offering is scheduled to take place on Wednesday.
Details of the Bond Series
The capital raised during the institutional stage is divided into two distinct series:
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Series A (Short-term): Tidhar raised 1.1 billion NIS with a weighted average duration (Macaulay duration) of 5.6 years. The annual interest rate was set at 2.68%.
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Series B (Long-term): Tidhar raised approximately 400 million NIS with a weighted average duration of 8 years. The annual interest rate was set at 2.99%.
Major institutional players in the Israeli capital market participated in the offering, signaling strong confidence in Tidhar's business operations. The proceeds from the issuance will be utilized for the company's ongoing operations and debt refinancing. The offering was led by Discount Underwriting and Leader Underwriting.
Executive Commentary
Uri Levin, CEO of Tidhar Group, stated:
"We thank the institutional investors who participated in this capital raise, once again expressing their confidence in the company and our business strategy. This comes shortly after Tidhar completed a highly successful initial public offering, one of the largest in the local real estate market. Tidhar holds a leading market position with growing operations across all three sectors: construction, development, and income-producing properties."
Levin recently made headlines after claiming that housing prices in Israel had dropped by 20%. He later clarified that his calculation factored in inflation over a four-year period, financing benefits, and developer promotions, while excluding the second-hand market, which represents the majority of home sales in Israel. Following the clarification, Levin expressed optimism that the real estate market would soon recover.
