The financing round is part of a series of issues by the bank, which will use the proceeds to finance its current activity.
Bank Leumi notified the Tel Aviv Stock Exchange today it would raise $120 mln overseas in deferred liability deeds and use the proceeds to finance its current activity. The bank made its decision yesterday.
The issue is one of a series the bank has made since 1997, to which it has allocated a $1 billion framework. The bank has raised $755 million in this framework in the past four years in issues held every few months. Of this total, $230 million was raised through deferred liability deeds included in the bank's secondary capital. This issue is apparently the next to last in the series. $125 million of the framework remains for the final issue, which is expected in several months.
As in the previous issues, the current issue is being conducted through Leumi International Investment, a wholly-owned subsidiary of Bank Leumi registered in the Netherland Antilles.
The deferred liability deeds are redeemable in four annual payments, starting in 2008. They are euro-denominated and bear variable interest. As in the previous issues, these deferred liability deeds are also registered for trade at the London Stock Exchange.
Published by Israel's Business Arena on October 29, 2001