Upload
doque
View
217
Download
3
Embed Size (px)
Citation preview
CONTENTS
Page 2
Who Did It Already? 3-5
Highlights 6-7
Overall Review
o Relative Size
o Rating Scale
o Interest Rate
o Collateral And Liquidation
o Real Estate
Information About BDO 15-17
BDO Offices Key Clients 18-22
Information About The Team 23-25
1
2
3
4
5
6
8-14
Who did it already?
Page 3
Credit Rating
Duration Interest RateAmount
($ Millions)Amount
(NIS Millions)Month of bond IssueCompany
A2.il3.46.35% (None CPI)61236Jan 17All Year Holdings
A2.il3.995.85% (None CPI)44173Feb 16All Year Holdings
ilA5.05.85% (None CPI)104399Dec 14All Year Holdings
A2.il3.47.17% (None CPI)118432Jan 17All Year Holdings
A2.il5.863.95% (None CPI)158582Feb 17All Year Holdings
A2.il5.854.10% (None CPI)1036Feb 17All Year Holdings
ilBBB+4.18.85% (None CPI)1973Dec 15Brookland April Limited
ilBBB+4.36.40% (None CPI)3231243May 14Brookland April Limited
ilA2.436.00% (None CPI)1870Sep 16Copperline American Limited
ilA3.36.00% (None CPI)88399Oct 15Copperline American Limited
ilA5.445.10% (None CPI)73268Feb 17Copperline American Limited
A1.il4.394.90% (None CPI)71274Dec 16Cornerstone Group
A3.il4.276.80% (None CPI)41160Jan 16Delshah Capital
A3.il5.764.60% (None CPI)61240Jan 16Delshah Capital
A3.il4.925.27% (None CPI)520Jan 17Delshah Capital
A2.il5.36.00% (CPI)156600Apr 15Extell Limited
ilA5.35.40% (None CPI)2731050May 14Extell Limited
U.S.real estate companies' bond issuance in the TASE in 2014 & 2015 & 2016 & 2017
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Who did it already?
Page 4
Credit Rating
Duration Interest RateAmount
($ Millions)Amount
(NIS Millions)Month of bond IssueCompany
ilA-3.117.75% (None CPI)30116Sep 16GFI
ilA-4.27.75% (None CPI)58225Mar 15GFI
ilA-3.965.75% (None CPI)81299Mar 17GFI
Aa3.il4.494.25% (None CPI)248970Mar 16KBS SOR
ilA-5.115.70% (None CPI)2490Mar 17Klein International Group Limited
A1.il4.176.05% (None CPI)87335Aug 16Lightstone Enterprises Limited
ilA+5.46.05% (None CPI)52200Dec 14Lightstone Enterprises Limited
A3.il2.88.90% (None CPI)36138Sep 16MDG Real Estate
ilBaa17.48.90% (None CPI2596Sep 15MDG Real Estate
A3.il2.528.30% (None CPI)1140Jan 17MDG Real Estate
A3.il3.763.75% (None CPI)67247Apr 17MDG Real Estate
A3.il3.744.09% (None CPI)621Apr 17MDG Real Estate
Aa3.il5.04.20% (None CPI)3611400May 15Moinian Group
ilA+4.265.80% (None CPI)117451Dec 16Namco Realty
ilA5.06.90% (None CPI)34130Dec 15Spencer Equity Group
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
U.S.real estate companies' bond issuance in the TASE in 2014 & 2015 & 2016 & 2017
Who did it already?
Page 5
Credit Rating
Duration Interest RateAmount
($ Millions)Amount
(NIS Millions)Month of bond IssueCompany
ilA3.366.40% (None CPI)1870Sep 16Strawberry Fields REIT Ltd
ilA6.56.40% (None CPI)58225Nov 15Strawberry Fields REIT Ltd
ilA2.955.05% (None CPI)1139Apr 17Strawberry Fields REIT Ltd
ilA3.366.40% (None CPI)1870Sep 16Strawberry Fields REIT Ltd
ilA5.185.15% (None CPI)64236Jan 17Spencer Equity Group Limited
ilBBB+3.637.40% (None CPI)75276Feb 17Southern Properties Capital
A3.il3.96.40% (None CPI)54211Nov 15The Klein Group
ilA-5.676.90% (None CPI)26101July 16The Leser Group Ltd
ilA-5.784.25% (None CPI)1871Mar 16The Leser Group Ltd
ilA6.46.90% (None CPI)73281May 15The Leser Group Ltd
ilA-3.454.41% (CPI)33120Feb 17The Leser Group Ltd
ilA+4.75.10% (None CPI)218847Mar 15The Related Companies
ilAA-5.854.35% (None CPI)65250Nov 16The Zarasai Group Ltd
Aa3.il6.34.35% (None CPI)66256Mar 16The Zarasai Group Ltd
ilAA-4.523.90% (None CPI)245898Feb 17Wharton Properties
U.S.real estate companies' bond issuance in the TASE in 2014 & 2015 & 2016 & 2017
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 6
Highlights
Filing with the Tel Aviv Stock Exchange (TASE)
Interest
• Single digit interest rate not linked to CPI – 4%-7%
• Coupon payable periodically
Principal
• Maturity to begin after 2-3 years if required
• Debt raising: 30% – 50% of equity
• Possible to avoid providing collateral or liens
Requirements:
• Min. equity required: $100M
• Min. assets fair value required: $250M
• Business plan and cash flow forecast enable debt repayment
Common security for issued debt:
• Secured by specific assets (senior lien)
• Subordinate after the bank
• Unsecured (with credit ratings)
Time to target- Process may take between 2 - 3 months
Costs-
Low-cost capital to finance real estate investments in comparison
to the United states
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 7
Highlights
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 8
Overall Review
The Israeli Capital Market is known to be small, remote and with low tradability,
and as such doesn't seem to be the natural choice for foreign companies.
But if so, why should foreign companies be interested in raising funds here?
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 9
Overall Review
There are a few main characteristics to the local market which provide foreign
companies a strategic and financial advantage with regards to raising
funds in the Israeli market:
Relative size
While they are considered small cap companies, which are not suitable for the
American Capital Markets and their investors' preferences, the Israeli market
perceives them as medium sized, and thus they receive the appropriate interest
and demand from local investors.
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 10
Overall Review
Rating scale
There is some difference between the global and local ratings of a company, due
to a lenient conversion table within the lowest part of the rating scale. In other
words, lower global rating levels are converted into an un proportionately high
local rating level.
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 11
Overall Review
Rating scale
The following is a global to Israeli rating scale conversion chart *:
*S&P Maalot official web site (www.maalot.co.il)
As can be observed in the table, a global credit
rating of (B) may be translated to a local credit
rating of (ilA-), by the local affiliate of the global
credit rating agency. This may be an inaccurate
evaluation in local terms.
Standard & Poor’s
National scale ratings
Local currency globalscale ratings
ilAAA‘BBB’ and Higher
ilAA‘BB’ or ‘BBB’
Ila‘B’ or ‘BB’
ilBBB‘B’
ilBB‘CCC’
ilB‘CCC’
ilCCC‘CCC’
IlCC‘CC’
SD‘SD’
D‘D’
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 12
Overall Review
BB+BB-Global credit
rating
BBB+AA+Local credit rating
3.36%2.44%2.08%Israel CPI
4.38%3.46%3.10%Israel None CPI
5.97%5.05%4.69%USD None CPI
Comparing average yields of rated bonds in Israel with duration 5 (06.04.17)
Interest rate
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 13
Overall Review
Collateral
Investors in bonds of foreign property companies with credit rating which is
medium and above usually do not require significant collateral, if any.
Liquidity
The Israeli institutional investors' market has a very high level of liquidity and
is keen to discover investment opportunities with low country risk.
RAISING DEBT IN THE ISRAELI CAPITAL MARKET
Page 14
Overall Review
Real Estate
The Israeli market shows increasing demand for real estate companies' bonds.
In the last three years, real estate companies' share of corporate bond issues
has gone up dramatically.
Page 16
5th
Largest Accounting
Firm In the World
1,408Offices
Worldwide
67,731Firm
Employees
158Countries
Europe, North American / Caribbean,
Latin America, Asia Pacific, Sub Saharan
Africa, Middle East
• BDO established in Europe in 1963.
• The firm specialized in providing
personal attention and professional.
• The firm is committed to a long
association with clients.
• The firm serves as a consultant to
costumers all over the world.
BDO WORLDWIDE
Page 17
ORGANIZATIONAL STRUCTURE
The audit services provided by BDO include
Audit and review of financial statements; Ongoing tax consulting; Preparation of prospectuses and close
guidance in the public issuance of securities in Israel and leading stock exchanges worldwide; Accounting
due diligence; Consulting on accounting issues; Consulting on IFRS; Consulting on U.S. GAAP; SOX audit;
Issue of professional opinions; Ongoing representation with the tax authorities
Manufacturing TechnologyBanking &
FinanceReal Estate
MunicipalitiesDefense Industry &
National Security
Government
Organizations
Energy
oil & Gas
Agriculture Retail
NPO Health
BDO ISRAEL EXPERIENCE
Page 19
.
The first bond issuance during the last trend
The first bond issuance of retail operations solely
The largest REIT in Israel
The largest banks in Israel
The second largest real estate company in Israel.
The largest nursing homes in Israel.
The largest bond issuance of a US real estate company in Israel
The first Florida/affordable housing company
BDO ISRAEL KEY CLIENTSBDO Israel provides services to the private, public and government sectors in Israel and
abroad, handling more than 300 public companies and mutual funds, traded on the Israeli,
UK and U.S. stock markets.
The firm's clientele includes leading companies in real estate and infrastructure, media,
communication, technology, software, retail, oil & gas, banking, manufacturing, automotive,
pension, shipping, capital markets, family-owned businesses etc.
Page 20
BDO ISRAEL REAL ESTATE BDO Israel works with many of the biggest brands in the Real Estate & Infrastructure
industry. Our clients select BDO Israel for the quality of our dedicated practice, partner-led
teams, and industry knowledge.
Page 21
BDO LEADERS
Page 24
Danny Margalit C.P.A (Isr.)Relationship Partner
Chairman & CEO
Telephone : +[972-3-6382520]
Fax : +[972-3-6368750]
Mobile: +[972-52-3200392]
Email: [email protected]
EXPERIENCE
Danny Margalit has over 30 years of experience providing accounting and consultancy services for
leading Israeli, US and European companies. Danny experience includes many integrated
engagements with BDO international firms, mainly in the US and Europe.
Danny specializes in cooperating with foreign investment banks, public flotation of Israeli
companies in the U.S. and in Europe, mergers and reorganizations of companies. In addition, he
also specializes in accompaniment of start up companies.
BDO LEADERS
Page 25
Hofit Gotesdyner C.P.A(Isr), Adv, MBAAudit Partner
Real Estate Cluster
Telephone : +972 [3-6386839]
Fax : +972 [3-6374341]
Mobile: +972 [ -52 8941894]
Email: [email protected]
EXPERIENCE
Hofit Gotesdyner has over 20 years of audit and business advisory experience. Since Hofit joined
BDO Israel, she has worked in audit and consultancy to public and private companies in various
sectors and issues.
Hofit has vast experience with auditing Real Estate companies. She lead many IPO’s for local and
global companies at the TASE.
Hofit has also been involved in the evaluation and structuring of mergers and acquisitions as well as
the performance of due diligence procedures.