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Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has raised a net NIS 991,6 million in the public tenders of its Series F and Series G bonds in Israel. The offering was oversubscribed, with NIS 1.9 billion in offers, including NIS 1.7 billion from investment institutions.
The Series F bond totals NIS 714,802,000, and bears an annual interest rate of 4.35%. The bond is linked to the Consumer Price Index (CPI). The unlinked Series F bond totals NIS 285,198,000, and bears an annual interest rate of 6.74%.
Cellcom did not say what it would use the proceeds for, but it reportedly plans to raise NIS 1billion. The strong demand for the bonds came despite difficult times for Israel's mobile carriers. Earlier this month, the company reported a 2.3% drop in revenue to NIS 6.51 billion ($1.7 billion) in 2011 from NIS 6.66 billion ($1.74 billion) in 2010. Net profit fell to NIS 825 million ($216 million) or NIS 8.28 ($2.17) per share, in 2011, from NIS 1.29 billion ($338 million) in 2010.
Cellcom's share price has halved in the past 12 months, due to rising competition and tighter regulation.
Cellcom's share price fell 1.5% in morning trading on the TASE today to NIS 46.73, after falling 1% in New York yesterday to $12.49, giving a market cap of $1.24 billion.
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