Our Debt

Highlights

Financial management
Over the course of the last four years, the Company has raised approx. NIS 5.6 billion. The Company has financial flexibility in debt raising with good conditions and long average duration, which further the Company’s continued initiation, betterment and development of additional projects and taking advantage of business opportunities.
The leading principles in management of the financial debt are:
1. Maintaining liquidity advantages.
2. Lowering the financing costs.
3. Extending average duration of the debt,
4. Maintaining a strong and stable balance sheet.
5. Maintaining a high rating.
The Company’s debt includes: Publicly-traded bond series, private loans from institutional bodies, loans and credit facilities from banking sources and commercial paper.

Financial challenges
The decrease of leverage in recent years contributed to the decrease in the Company’s risks alongside maintenance of a leverage ratio which allows for business development and improvement of the return on equity, and also helped the Company to enter the COVID-19 crisis from a better position.
As aforesaid in in the section on the effects of the COVID-19 outbreak, the Company took a number of steps to increase liquidity for to allow for greater flexibility in dealing with the crisis.
The Company is continuing to consider its steps as well as options for raising debt in the capital market, in order to lower financing costs while extending average duration of the debt, as it did during Q1 and thereafter in the debt raising with bond series J, N and R.

Current principal repayment rate net of balloon components secured by encumbrance

The stable cash flow that the Company’s properties produce, together with the long-term payment schedule and implementation of the financial strategy, allow the Company to finance its operations at competitive financing terms from a variety of available sources.

The financing component is one of the main factors of the Company’s success. Through diversification of the sources of financing and maintenance of high liquidity, the Company can continue its development momentum.

*) After the date of the balance sheet, the Company increased its credit facility against the Ramat Aviv Mall (see section on the effects of the COVID-19 outbreak). Insofar as it shall be fully utilized, the ratio of the debt against which the Ramat Aviv Mall is encumbered will increase from approx. 26% currently to approx. 34% of the property’s value as of the date hereof.