Mivne Real Estate Group successfully completed the institutional phase of its bond and commercial paper issuance, receiving oversubscription demand of about NIS 1.5 billion ($414m.). From this amount, the company chose to raise about NIS 700 million ($193m.) – approximately NIS 390m. through a new bond series and about NIS 300m. through commercial papers (CPs).
The bond series, Series 26, was closed with an annual inflation-linked interest rate of 3.24% and an average duration of about 7.2 years, with the final repayment expected in March 2034. The series received a high rating of ilAA from Maalot and Aa2.il from Midroog – both with a stable outlook. At the same time, the CPs were raised for one year, with a margin of 0.14% above the Bank of Israel's interest rate.
According to Uzi Levy, CEO of Mivne Real Estate Group: "We thank the investors for their expression of confidence in the successful offering. The high response reflects the trust in the group's financial strength, its leadership, and its business strategy. The proceeds from the offering will be used for debt refinancing and to promote ongoing operations, including implementing the strategic plan to increase NOI [net operating income] by about NIS 400m. ($110m.) by 2028."
Looking Ahead: Five New Projects and Hundreds of Millions of Shekels
Alongside the offering, the group is advancing the construction of five new projects with a total area of over 130,000 square meters, which are expected to yield an additional annual NOI of about NIS 190m. in the short term.
Mivne Real Estate Group, one of the largest and oldest companies in Israel in the income-producing real estate sector, owns about 564 income-producing properties across the country, renting a total area of approximately 1.6 million square meters to about 3,000 tenants, alongside 22 additional projects in the initiation and construction stages. The company has an occupancy rate of over 93% and high liquidity, with a cash reserve and short-term investments totaling about NIS 861m. ($238m).
Last month, the company published its 2024 reports, which indicated improvement in operational parameters, with a 3% increase in NOI to about NIS 853. and a 65% increase in net profit to shareholders, reaching about NIS 549m.