JERUSALEM, Jan 23 (Reuters) - Israel’s Mizrahi-Tefahot Bank said on Thursday it expects to raise about 1.6 billion shekels ($460 million) in bond issues to institutional investors and to the public.
Mizrahi-Tefahot, Israel’s largest mortgage lender, said it will expand two series of bonds linked to inflation, including one that was zero coupon, which does not pay interest but whose principal is linked to inflation.
Demand at the institutional stage reached 4.5 billion shekels from dozens of groups, and the public phase will be next week, Israel’s fourth largest bank said, adding that the bonds were rated “AA+”.
The 3.6-year zero coupon bonds reflect annual yields of 0.42 percent, 0.67 percent above comparable Israeli government bonds, while the other series, a 4.7-year bond, will pay interest of 0.87 percent, 0.66 percent above comparable government bonds.
$1 = 3.4882 Israeli shekels Reporting by Ari Rabinovitch; Editing by Steven Scheer