Yitzhak Tshuva is lending money to his gas exploration units while negotiations on a loan from HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC) continue. Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DLEN) has granted a $10 million owners loan to Avner Oil and Gas LP (TASE: AVNR.L) and a $15 million loan to Delek Group Ltd. (TASE: DLEKG), which own stakes in the Tamar, Noa, Leviathan, and other offshore natural gas fields and licenses.
The loans bear an annual interest rate of LIBOR + 3.6%, and are due to be repaid in 45 days. The loans are intended for Avner and Delek Drilling's upcoming investments in the Tamar and Leviathan project and in the Alon license, because negotiations on the terms for the drawing on credit from HSBC have not been completed.
On Tuesday evening, the Petroleum Council rejected Delek's request to give HSBC a lien on its rights to Leviathan as collateral for a loan to finance the company's share in the development of the Tamar and Noa gas fields.
Delek Group's share price rose 1.6% by mid-afternoon to NIS 810.50, giving a market cap of NIS 9.1 billion, Delek Energy's share price rose 1.8% to NIS 1,765, giving a market cap of NIS 8.7 billion Avner's share price rose 1.5% to NIS 2.72, giving a market cap of NIS 8.9 billion, and Delek Drilling's share price rose 1.7% to NIS 15.52, giving a market cap of NIS 8.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2012
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