Gas partnership Isramco Negev 2 LP (TASE: ISRA.L) today announced its intention of raising NIS 450 million in debt, mostly through a bond issue, for the purpose of distributing all of its $427 million 2016 profit to its shareholders as a dividend.
The company also announced that it would take action to distribute its estimated $400 million annual profits for the next two years at six-month intervals, meaning that its investors will receive NIS 4.5 billion from the partnership's profits for 2016-2018.
Isramco, which owns 29% of the Tamar national gas reservoir, notes that its dividend is contingent on a number of conditions: the financial situation of the partnership, its expected cash flow, its financing needs, and the legal requirements for distribution of a dividend (the profit requirement and the repayment capability requirement).
Isramco participation units spurted 6.5% on the TASE in response to the news.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 5, 2017
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