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PADICO issues bonds in $120 million

Masri: The great success indicates the confidence of investors

Rawabi, 10 August 2021

PADICO Holding issued new bonds in $120 million, with a term of five years, where the entire value of the issue was covered, in a private subscription with the participation of 11 local and regional investors.

Bashar Masri, Chairman of PADICO’s Board of Directors, expressed his happiness for the high confidence in PADICO, especially that the subscription process witnessed great acceptance by investors, especially from banks operating in Palestine, in addition to the joining of new investors in this issuance from financial and public institutions and provident funds. The volume of the subscription amounted to 138 million dollars, a 15% surplus over the total value of the issuance, which amounted to 120 million dollars.

Masri clarified that the majority of banks that subscribed to the first and second issues renewed their subscriptions to the new issue, which reflects the state of satisfaction of bondholders, as a result of the company’s fulfillment of all its obligations in previous issues.

The general assembly of subscribers in bonds held its first meeting with legal quorum, in participation with representatives of investors, including banks and financial institutions in the presence of the Governor of the Monetary Authority, Dr. Firas Melhem, CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi, Director General of the Palestinian Deposit Insurance Corporation Zaher Al-Hamouz, Chairman of the Board of Directors of the Palestine Exchange Maher Masri and founders of PADICO Sabih Masri and Munib Masri and members from its Board of Directors and Executive Management.

The general assembly of subscribers of bonds elected the Arabi Group Company for Investment as the trustee of the issuance.

The general assembly of subscribers in PADICO Company had previously approved during an extraordinary meeting, the issuance of the new bonds in an amount of $120 million.

In this context, the governor of the Monetary Authority, Firas Melhem said, “The decision of PADICO Company to issue the third bonds is in line with the direction of the Monetary Authority to encourage major companies to obtain financing through the issuance of bonds. We consider the new issuance as an achievement for PADICO and the Palestinian economy, especially since it comes after a ten years of experience for the Company, where it was the first to issue bonds at the level of the private and public sectors, and we wish PADICO all success in its growth and giving.”

For his part, the CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi said that PADICO complied to all the requirements of bonds issuance, specifically the Securities Law No. (12) of 2004, and the instructions for issuing securities issued by the Authority’s Board of Directors in 2008, including the Bonds Issuance Publication that included information and data needed to be included in the publication, so as to enable investors to take the decision to subscribe in bonds.

In his turn, the Arab Bank Regional Director, in his capacity as the trustee, expressed his appreciation and thanks to the bonds’ owners for the confidence and election of the Arabi Group for Investment as trustee of the issuance, affirming that the group will work with PADICO and the bonds’ owners to complete the issuance procedures and commitment to laws and regulations in a manner that guarantees the success of the process.

It is noteworthy that the new issuance bonds bear specifications and conditions similar to the previous issuance in terms of coverage ratio, guarantees and other conditions. They are bonds secured by a share pledge and represent an excellent debt, as the value of these shares covers 130 percent of the total nominal value of the bonds, and it includes shares traded for subsidiaries and affiliates of PADICO.

The investors in PADICO bonds will earn a return of not less than 5% during the five-year period of the bonds and the return will be paid semi-annually.

It is worth noting that PADICO Holding invests in various vital sectors, the most important of which are communications and information technology, financial services, real estate, tourism, industry and agriculture, and industrial zones, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.

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