July 10, 2019 / 12:08 PM / a month ago

OFFICIAL CORRECTION-Israel's Bezeq Telecom raises $250 mln in private bond sale

(Company corrects amount raised in bond sale)

JERUSALEM, July 10 (Reuters) - Bezeq Israel Telecom said on Wednesday it raised 890 million shekels ($250 million) in a private offering of two bond series to institutional investors.

It sold 427.9 million shekels of unlinked bonds that will mature in 2030 and pay annual interest of 3.6%.

Bezeq, Israel’s largest telecoms group, sold 461.7 million in a second series of inflation-linked bonds that will also mature in 2030 and pay interest of 2.1%.

The interest rate could be reduced by 0.4 percentage points should the bonds be listed for trade in Tel Aviv.

The bonds are rated ‘AA/Negative’ by Standard & Poor’s Maalot and ‘Aa2/Negative’ by Moody’s Israel affiliate Midroog.

Bezeq is going through a transformation, with its highly indebted parent company in the process of selling its holdings. Bezeq had a large writedown in the first quarter and cancelled its dividend payouts as it faces stiff competition in all telecoms sectors.

Bezeq’s shares have slid 32 percent so far in 2019 to 2.49 shekels, just above a 21-year low of 2.14 shekels reached in May.

$1 = 3.5712 shekels Reporting by Steven Scheer; Editing by Tova Cohen

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