TEL AVIV: Israeli real estate investment company Gazit-Globe raised 500 million shekels ($130 million) in a public offering of bonds which it will use to pay down debt, it said on Tuesday.
The company expanded its series 9 unsecured debentures, which bear interest of 5.30 percent, are adjusted to the consumer price index and mature in 2018.
The offering was underwritten by a syndicate led by Leader Capital Markets.
The debentures carry a credit rating of "A+/A1" with a stable outlook by Standard & Poor’s and Moody’s domestic subsidiaries — Maalot and Midroog, respectively.
Midroog upgraded Gazit-Globe’s rating outlook for the company’s bonds to "stable" from "negative" in April, saying there had been substantial improvement in the company’s liquidity and financial flexibility and that it had been successful in lowering its level of leveraging.
Net proceeds from the bonds will be used to pay down some of the company’s revolving credit facilities.
Gazit-Globe develops income-producing properties throughout the world, focusing on supermarket-anchored shopping centers.
It operates in the United States through Equity One and in Canada through First Capital Reality Inc.
It is the largest shareholder in Finland’s Citycon and together with Citigroup controls shopping mall developer Atrium European Real Estate.
