Opening to International Investments
Over 20 years ago, Israel's investment market expanded to allow direct investments in international financial and alternative sectors.
Owners / Companies can issue unsecured bonds
backed by their equity position in the portfolio.
Bonds do not interfere with 1st or 2nd position lenders. The bonds are recourse to the issuing entity. The Bonds are backed by the company's equity position, not specific assets.
Purchase additional assets, develop new assets, refinance existing expensive debt (mezzanine or preferred equity in the existing portfolio), buy out partners shares in existing portfolios.
Bond maturities of 6 to 10 years.
Will vary depending on bond ratings and government bond spread. Existing bonds are trading at a spread of 1.00% to 3.50% rates over government bonds. New companies are expected to issue at a slightly higher rates (local rates plus a 0.3%~0.5% spread for the first time offering). Once the market become familiar with the company, future offerings will be at lower rates).
To be made from the portfolio’s existing and future operating cash flows and from capital events proceeds after development of properties.
Israel’s leading Investment banking
advisory firm for debt and equity raising
for foreign companies in the Israeli
capital market
+972-3-612-3939
info@vcg.co.il