| The Bank raised NIS 1.5 Billion from Institutional Investors |
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| 6/25/2009 |
Record Success for Bank Hapoalim Issue:
The Bank raised NIS 1.5 Billion from Institutional Investors
-Capital notes issued will be recognized as part of the Bank's Upper Tier 2 capital
-Since the beginning of 2009, Bank Hapoalim has raised about NIS 4 billion
A clear vote of confidence by institutional investors led to a highly successful institutional tender for Bank Hapoalim yesterday. Under the framework of the tender, a series of capital notes were issued which will be recognized as part of the Bank's Upper Tier 2 capital.
Bank Hapoalim raised about NIS 1.5 billion. The issue will be completed next week with a tender to the public, in which the Bank expects to raise an additional sum.
Bank Hapoalim offered a series of capital notes with CPI-linked interest with a duration of 8 years. The interest rate set in the institutional tender is 5.75%, notably less than the maximum rate offered in the tender (5.95%).
June was a record month for capital issues for Bank Hapoalim. Since the beginning of the month, the Bank has raised over NIS 3 billion and since the beginning of the year, a total of NIS 4 billion was raised - from institutional investors and the general public, through offerings in Israel and abroad. As noted above, an additional amount will be raised next week, when the public phase of the issue is completed.
The current issue is part of an ongoing effort by Bank Hapoalim to increase its capital-adequacy ratios. As part of this process, the Bank's Board of Management and Board of Directors recently approved the issuance of Tier 2 capital notes, which will be recognized by the Bank of Israel as part of the Bank's Upper Tier 2 capital.
Bank Hapoalim commented that yesterday’s successful issue joins a number of issues by Bank Hapoalim representing a clear vote of confidence in the Bank by the capital market.
The issue was managed by Poalim I.B.I.
About Bank Hapoalim
Bank Hapoalim is Israel's leading financial group. In Israel, the Bank Hapoalim Group includes financial companies involved in investment banking, credit cards, trust services and portfolio management. The Group also has holdings in non-banking sectors.
Internationally, Bank Hapoalim operates through 40 branches, subsidiaries and representative offices, in North and Latin America, Europe, the Far East, Turkey and Australia. In these markets, the Bank is engaged in trade, corporate finance, private banking and retail banking.
Bank Hapoalim is the only Israeli Bank listed on both the Tel Aviv and London Stock Exchange. In addition, a Level-1 ADR is traded "over-the -counter" in New York. |
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