TEL AVIV (Reuters) - Israel's Tamar Petroleum said on Thursday it raised $650 million (502.28 million pounds) in a debt offering to institutional investors in Tel Aviv, the first stage in the offering of Delek Drilling's (DEDRp.TA) share in the Tamar natural gas field.
Demand reached 4.3 billion shekels ($1.2 billion), almost double the raising target and the debt interest rate was fixed at 4.69 percent. Upon completion of the public stage of the offering, which is planned for next Thursday, the bonds will begin to trade on the Tel Aviv Stock Exchange.
The bond offering is the first stage of the offering of Tamar Petroleum, a special purpose company that will purchase 9.25 percent of Delek Drilling's holdings in the Tamar field.
The second part of the offering of Tamar Petroleum, an equity raising from local and foreign investors, will be completed in around two weeks. Shares of Tamar Petroleum will trade in Tel Aviv.
Reporting by Tova Cohen