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Bank Leumi last week raised another NIS 125 million in a private issue of deferred notes to institutional investors. Investors included Makefet Pension Fund, the Mizrahi Bank and Israel Discount Bank pension funds, Migdal Insurance Co and the Mivtahim pension fund.

The terms of the current allocation will be identical to those in the bigger issue by Bank Leumi at the end of June, in which the bank raised NIS 410 million. Bank Leumi's then issued three series of bonds, the first one an NIS 100 million shekel-linked bond carrying maximum interest of 7.3%.

The second series is a CPI-linked NIS 210 million issue, carrying maximum interest of 5.4%. The third is a dollar-linked bond series carrying a 0.7% above Libor. Leumi's bond issue was rated AAA by Maalot Israel Securities rating company.

The deferred notes will be effectively allocated only after they are approved for trade on the TASE.

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