By Jennifer Chiou
New York, May 11 - Padico Holding announced the successful issue of the first corporate bonds in Palestine with a total amount of $70 million.
According to a news release, the Palestinian financial services sector has not previously had issues of any form of bonds for project financing outside of customary bank loans.
The privately placed bonds will not be listed on the Palestine Exchange.
In the oversubscribed offering, Padico will issue 7,000 five-year bonds at $10,000 each.
The bonds will bear interest at 5% for the first 30 months. After that period, interest will accrue at six-month Libor plus 250 basis points, with a floor of 5% and a ceiling of 6.5%.
"We are also proud that Padico Holding and the private sector have preceded the public sector in issuing the first Palestinian bonds, which represents a sign of agility and progressiveness," Salam Fayyad, the Palestinian prime minister, said in the release.
The Ramallah, Palestine, investment company said that it plans to establish several major projects in the coming period, including a power generation project in northern West Bank at a total cost of $300 million.
| Issuer: | Padico Holding
|
| Issue: | Corporate bonds
|
| Amount: | $70 million
|
| Maturity: | Five years
|
| Coupon: | 5% for first 30 months; thereafter, six-month Libor plus 250 bps, floor of 5% and ceiling of 6.5%
|
| Price: | Par of $10,000
|
| Announcement date: | May 11
|
| Distribution: | Private placement
|
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