Israel Electric plans up to NIS 3 billion state-guaranteed debentures

By Angela McDaniels

Tacoma, Wash., May 31 - Israel Electric Corp. Ltd. plans to sell up to NIS 3 billion of debentures guaranteed by the State of Israel, according to a company notice filed with the Tel Aviv Stock Exchange Ltd.

The company's audit committee and board of directors approved the issuance on Tuesday. The company said on Wednesday that it planned to publish a prospectus for the public issue of debentures, but the publication has been postponed.

Israel is the company's controlling shareholder with a 99.85% stake.

As previously reported, the company said in March that it was negotiating with the Israeli Ministry of Finance about a state guarantee. It then priced NIS 1.5 billion of 3.05% state-guaranteed debentures on April 5.

The company said its fuel costs have significantly increased due to the disruption and subsequent complete stoppage in the supply of natural gas from Egypt and the increasing depletion of the Mari B gas reservoir in the Yam Theys project.

Israel agreed to guarantee an amount of debentures reflecting the cost of purchasing additional fuels instead of natural gas.

Israel Electric is a Haifa, Israel-based publicly controlled utility.

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