Israeli power utility IEC raises $500 mln through bond offering

By Trend

State-owned Israel Electric Corp (IEC) has raised $500 million through dollar-denominated bonds sold to institutional investors in the United States and Europe, it said on Wednesday, adding that there was demand for $2.5 billion, Trend reports with reference to Reuters.

The 10-year bonds will pay a yield of 3.79%, or 1.75 points above comparable U.S. Treasuries, IEC said.

Ofer Bloch, chief executive of IEC, said the company had set a goal of diversifying its financing sources after four years out of international markets.

The offering was underwritten by Barclays and BNP Paribas.

Electricity usage jumped in January during a stretch of cold weather before rising coal prices boosted power prices at the start of February.