JERUSALEM, Sept 4 (Reuters) - The cash-strapped Israel Electric Corp (IEC) raised 1.5 billion shekels ($373 million) in government-backed bonds to help it meet higher fuel costs, the utility said on Tuesday.
IEC, Israel’s state-owned electricity monopoly, said it expanded two bond series as part of a government aid package to tackle the cash crisis in part stemming from a shortage of natural gas and the need to purchase more expensive fuels.
“The capital raised enables the company to continue meeting its commitments and is a vote of confidence by the Israeli government,” said IEC chairman Yiftah Ron-Tal.
IEC has accrued more than $16 billion in debt and is being kept alive by repeated government-guaranteed bond offerings, which have totalled 5.9 billion shekels ($1.47 billion) in 2012.
IEC is expected to get a boost in mid-2013 when Israel’s large Tamar offshore gas field is due to begin production.
$1 = 4.02 shekels Reporting by Ari Rabinovitch