Bank Hapoalim will issue NIS 400 million in deferred capital notes tomorrow. The bank will raise NIS 350 million on an issue of F series deferred capital notes redeemable in January 2009, and another NIS 50 million in an issue of G series notes redeemable in January 2012. The issue will be a tender on the interest, the maximum possible interest being 7.5% and the minimum interest 0.1%.
In the beginning of December the bank carried out a similar NIS 500 million issue of deferred capital notes, at a price that reflected a 5.5% interest for the investors. The previous issue, led by Poalim Capital Markets and IBI Underwriting, was five times oversubscribed.
In November 2001 the bank published a prospectus for a NIS 2 billion deferred capital notes issue. In December NIS 500 million were raised, now NIS 400 million are being raised, and the rest will be raised within the next couple of years.
Analysts at Maalot rating company, who rated the notes AA, said that in the last few years Bank Hapoalim topped the market in terms of profit rates, but its profits in recent quarters are similar to the profits posted by the entire banking system.