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NIS 150m Supersol bond issue massively oversubscribed, company raises NIS 400m

Most popular bonds were of the longer-term, higher yield kind

Having set out to raise NIS 150 million, Super-Sol (NYSE:SAE) ended up raising NIS 400 million in bonds from institutional investors. Demand of NIS 1.25 billion was posted in the issue.

The issued bonds are CPI linked and were of two kinds. The first one is a linked bond redeemable in 2003 and carrying maximum interest of 4.5%, which eventually was reduced to 4%. The second is also CPI linked, carrying maximum interest rate of 5.2%, which was later set at 4.8%, redeemable in 2007. The first bond yielded NIS 82 million, and the second kind brought in NIS 318 million.

The issue was led by Ilanot Batucha investment bank and by underwriting company Gmul Sahar Securities Brokerage Services.

Supersol was approved for a $300 million issue by Maalot rating company, but due to high demand from institutional investors asked to raise the limit to NIS 500 million, which ended up totaling NIS 400 million.

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