Israel Electric switches on EM investors with super-tight $500m

Israel Electric Corp, the country’s monopoly electricity supplier and distributor, priced a $500m five year bond late on Tuesday at a yield of 6.7%, inside guidance of 6.875%. The 144a Reg S deal was issued at par after attracting over $3.3bn of orders from 225 investors. Barclays Capital and UBS were bookrunners. Sources close to the deal claimed the bond had priced 10bp tighter than fair value for a new February 2017 deal. “There can't have been many - if any - emerging market borrowers that have priced with a negative new issue premium this year,” said Fergus Edwards, head of emerging markets syndicate at UBS in London. “It’s a genuine through-the-curve print; and as the first deal from Israel Electric in several years, it has helped refresh their entire curve and provided an on-the-run benchmark.”

• Status
  redeemed
• Country of risk
  Israel
• Redemption (put/call option)
  *** (***)
• Amount
  500,000,000 USD
• М/S&P/F
  — / — / —

• Full name
  Israel Electric Corporation
• Registration country
  Israel
• Industry
  Power