Haifa Port Company planning NIS 550 million private placement of ten-year bonds to finance the port’s investment plan over the coming years
Haifa Port Company Ltd announced last week it had obtained an AA/Stable rating from Maalot, The Israel Securities Rating Company Ltd, an affiliate of Standard & Poor's Corp.
Haifa Port Company planning NIS 550 million private placement of ten-year bonds to finance the port’s investment plan over the coming years. Port official said that the lion share of the money will be diverted to investment in equipment and cranes for the Carmel A Port project.
Another part will back letters of credit from banks for the purchase of equipment
The announcement made by the port company noted that this was the first ever rating for one of Israel’s port companies.
Haifa Port company was the first port company to complete the rating process, even though it has no audited financial reports.
It is also understood that Ashdod port company has taken similar steps and has initiated procedures for obtaining a rating for the bonds it plans to issue. The company plans to issue NIS 200-300 million in bonds.
Maalot's high rating is partly based on a lower than average risk assessment for the Israeli port sector, the company’s leadership position in the Israeli market, and its business strategy for the coming years.
Maalot's report explicitly mentioned the high quality and experience of Haifa Port’s management which has the knowledge to deal with port workers as well as regulators.