IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, has confimed the report in "Globes" on February 7 of a loan from Menorah Mivtachim Holdings Ltd. (TASE: MORA) and the Bereshit fund. IDB reported to the Tel Aviv Stock Exchange today that Menorah and Bereshit had agreed to lend it NIS 300 million (NIS 150 million each), index-linked, bearing index-linked interest of 6.9% a year, payable quarterly.
The loan capital will be repaid in two tranches: NIS 50 million to each lender in 2017, and NIS 100 million in 2018. Under the loan agreement, IDB has granted the lenders options on shares of Discount Investment Corporation (TASE: DISI) held by IDB Development amounting to 1.7% of Discount Investment at an exercise price of NIS 25 per share, with a limit on the upside of NIS 46 per share. The options are exercisable until May 2016.
The loan is secured by a lien on the shares of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Discount Investment, and Clal Industries held by IDB Development.
The background to the loan is the steep rise in yields on IDB bonds, which in some cases have exceeded 20% in recent days, because of the sharp fall in the share price of Credit Suisse, in which IDB has a stake.
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2012
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