Palestine Development and Investment Company (PADICO HOLDING)
Financial Summary Q3 2012
|Subsidiaries Operating Income
|Net Consolidated Profit
PADICO HOLDING, established in 1993, is a limited shareholding company that is listed on the Palestine Stock Exchange (PEX). Since its inception, the company’s mission has focused on developing the Palestinian economy through investing in vital economic sectors. A well-structured and resourceful collection of associates and affiliates that operate in infrastructure, real estate, telecommunications, tourism, industry, and financial services fulfill this mission. PADICO HOLDING’s strategy targets large-scale entrepreneurial and socially responsible projects that offer clear benefits to the Palestinian economy. The strategy also calls for maintaining a balanced portfolio that diversifies investments by economic sector and geographical locations within Palestine.
PADICO HOLDING has been listed on the Palestine Exchange (PEX) since 1997, and its shareholder profile is diverse and includes major Palestinian and international investors. Its total shareholders number more than 10,500.
PADICO HOLDING’s most notable investments include: PALTEL Group (32% ownership), Palestine Real Estate Investment Company (71%), Palestine Industrial Investment Company (57%), Jerusalem Development & Investment Company (100%) Palestine Exchange (76%), and Palestine Poultry Company (89%).
PADICO HOLDING’s future outlook focuses on improving the performance of current investments, in addition to exploiting opportunities in new economic sectors. The company has successfully completed a major restructuring plan, consolidating existing investments in the tourism, real estate, industrial, and financial sectors into specialized holdings. This has streamlined PADICO HOLDING’s corporate structure and improved the efficiency of the company’s operations. The company is also identifying new business opportunities in the infrastructure and environment sectors, particularly in the fields of power generation, water resources management, waste-water treatment, and solid waste recycling.
In 2011, PADICO HOLDING became the first Palestinian company to issue corporate bonds, which enjoyed tremendous demand by banks and financial institutions. The value of subscription reached USD $ 85 million, marking a USD 15 million surplus on top of the USD 70 million original initial offering. Ten banks and financial institutions subscribed to PADICO HOLDING-issued corporate bonds. These included the Palestine Monetary Authority (PMA), Arab Bank, Bank of Palestine, Cairo-Amman Bank, Union Bank, Capital Bank, Alrafah Microfinance Bank, Jordan-Kuwait Bank, Bank of Jordan, and the Commercial Bank of Palestine. Based on the bond prospectus, corporate bonds were entirely allocated for the interest of subscribing banks. The successful issuance reflects PADICO HOLDING’s strength, solvent financial position, and positive projections of its future performance. Accordingly, the company expects to be capable of repaying bonds on their maturity date in five years. The success of the corporate bond issuance demonstrates a deep trust and confidence in PADICO HOLDING on the part of both private corporations and official authorities, especially given the political and economic uncertainty in Palestine and the region.