Rafael raised NIS 800 million in bonds

The government defense industry company Rafael today (Wednesday) raised NIS 800 million in bonds by issuing private bonds in the expansion of series C, D and E. The company planned to raise NIS 500 million but expanded the fundraising due to demand. This is the first debt raising for the company since 2017.
Maalot gave a AAA rating for the company's debt in a review published in January. The rating company then noted Rafael's advanced technological capabilities in developing systems with a clear technological advantage over competitors, the high strategic importance to the Israeli Ministry of Defense due to geopolitical instability in the Middle East and the low leverage.
In the news, Maalot noted the limited scope of activity and less access to the international arena relative to competitors in the world due to the barrier of business relations with certain countries, the low profitability compared to the comparison group due to relatively low operating profitability in contracts with the Ministry of Defense, and the gradual decline in US aid budget.
The company's backlog stands at about $ 25 billion, and half of its sales are in Israel. Discount Underwriting and Barak Capital Underwriting led the recruitment.