RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Wishtree Capital is a leading advisor for bond raising in the Israeli capital market.
The Israeli capital market, and more specifically the Israeli fixed income market, have traditionally enjoyed unique long-lasting characteristics compared to other markets.
Powered by a stable over-liquidity and cash accumulation within institutional investors, that are driven by the local obligatory pension regulation, and coupled with the fact that there is a small number of local issuers compared to other markets, corporate bonds issued in Israel are traded at low spreads over Israeli government bonds, with very strong demand for new and diversified issuers.
This creates a unique opportunity for non-Israeli companies to issue unsecured, rated corporate bonds in the Israeli capital market.
By conducting a streamlined and smooth process, done many times before, with strong forecasting ability and minimal process related risks, a foreign company could potentially raise debt in Israel with long amortization schedule, at very attractive rates and with no guarantees or pledges.
An initial issuance typically lasts 3-4 months, and a subsequent offerings could be completed within 2 weeks or less, creating an opportunity to establish an ongoing financing channel with the capital markets
Major advantages include:
- Long amortization schedule
- Flexible Use of Proceeds
- Unsecured & uncollateralized
- Very lenient covenants
- Smooth and efficient process, executed many times before
- Typically enjoys high local rating (Moody's, S&P) compared to the U.S.
- Establishing a public market financing channel for future issuances