Azrieli Group Successfully Completed the Tender for Accredited Investors for the Issue of a New Bond Series in the Scope of Approximately NIS 1 Billion

TEL AVIV, Israel, September 3, 2015 /PRNewswire/ --

- In light of high demand of approximately NIS 1.5 billion, the Company increased the planned financing to approximately NIS 1 billion 

The Azrieli Group reports today that it successfully completed the tender for accredited investors for the issue of a new bond series. Demand in the tender reached approximately NIS 1.5 billion and the Company received pre-offering commitments for the purchase of bonds in the scope of NIS 992 million. The interest rate in the tender was closed at 1.64%, as opposed to the maximum interest which stood at 2.1%. This interest rate constitutes the maximum interest for a public tender which is expected to take place in the coming days. Series C is index-linked with a duration of approximately 6.9 years, repayable from 2018 through 2027.

A wide variety of institutional bodies, amongst the largest in the local capital market, participated in the issue. Clal Finance Underwriting led the issue, in which Leumi Partners Underwriters, Leader Issuances, Barak Capital Underwriting, Excellence Underwriting and Menora Underwriters also took part.

The new series was rated ilAA+ with a stable outlook by Maalot S&P. At the end of January 2015, the rating agency raised the Company's rating from ilAA to the current rating and stated, among other things, that the financial profile of the Group fits the new rating due to the expectations of a significant decrease in the financing costs in the near future, as a result of a debt refinancing by the Company in the last two years, in which expensive historic debt was replaced with new debt at significantly lower interest rates. Maalot further stated that the Group's competitive positioning in the the income-producing real estate sector will be maintained, as well as the solid financial profile and low leverage.

Irit Sekler-Pilosof, Azrieli Group CFO said today: "This is the Group's second series raised in the listed institutional market, further to the acts performed by the Group for an additional reduction in the financing costs, to refinance its debts, and for its ongoing requirements. The successful completion of the institutional stage attests, once again, to the capital market's faith in the Group and its operations."

About Azrieli Group 

Azrieli Group Ltd. owns and operates one of Israel's largest portfolios of malls, shopping centers and office properties nationwide. The Company is publicly traded on the TASE under the symbol AZRG IT, and is included in the TA-25, TA-100 and TA Real Estate 15 indices. It is the only Israeli stock included in the EPRA Index, which is the European index of the world's largest income-producing property companies. As of June 30, 2015, the Company has an equity market capitalization of about NIS 18.3 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area of approx. 840,000 square meters; the Company holds 15 malls and shopping centers comprising 301,000 square meters of leasable space across Israel, 11 office properties comprising 352,000 square meters of leasable space across Israel and 6 properties overseas (mainly in Houston, Texas) comprising 187,000 square meters of leasable space. In addition, the Company has 8 projects under development comprising around 507,500 square meters of leasable space in Israel. Approx. 90% of the fair value of the investment property and the property under development relates to domestic properties (in Israel). The Group has been specializing in shopping center and office space development, acquisition, and management for the past 30 years. For further information, please visit the Company's website at http://www.azrieli.com.

For further information:
Moran Goder
Head of Investor Relations, Azrieli Group  
Office: 972-3-6081310
Mobile: 972-54-5608151  
morango@azrieli.com