Major success for Aviad Interest Rates in its debut debt offering: ₪1.15 billion in demand in institutional tender

Aviad Interest Rates, in its first-ever bond issuance, enjoyed excess demand and closed the institutional stage at an exceptionally low interest rate of just 0.18% above the Bank of Israel interest rate. It is now working to increase the offering size.

Aviad Interest Rates Ltd. successfully completed the institutional stage of its first Series A bond offering, drawing demand of approximately ₪1.15 billion. The company received commitments totaling approximately ₪1.14 billion at a low interest margin of just 0.18%. Following the success, the company is engaging with the rating agency Midroog to increase the approved issuance volume from ₪900 million to up to ₪1.26 billion.

Aviad Interest Rates Ltd. recorded significant success in the institutional stage of its first bond offering (Series A), according to a filing released by the company. The tender, held on October 5, 2026, saw keen demand from classified investors, reaching a total of approximately ₪1.15 billion. This success represents a strong vote of confidence in the company, which published a prospectus for its initial public offering (IPO) just this past August.

Tender details and low interest rate

As part of the institutional tender, the company received preliminary commitments to purchase bonds in a total volume of approximately ₪1.14 billion (1,142,563 units), out of total demand of approximately ₪1.15 billion (1,149,450 units). This translates to an exceptionally high fulfillment rate for the company against the orders placed.

The highlight of the offering is the low interest rate achieved. The tender was conducted using a uniform price method on the annual interest margin rate above the Bank of Israel interest rate, and concluded with a margin of just 0.18%. This rate, considered very low, will also serve as the maximum interest margin in the public tender stage, if and when it takes place. This low cost of capital demonstrates the attractiveness that the market ascribes to the company and its bonds.

Increasing the offering size

The success of the institutional tender has also prompted the company to work toward increasing the planned fundraising amount. According to the filing, the original rating report attached to the prospectus from Midroog assigned an ilAaa rating to bond volumes of up to ₪900 million. In light of the high demand, Aviad Interest Rates has approached Midroog with a request to increase the rated volume to an amount of up to ₪1.26 billion.

However, the company emphasizes that there is no certainty that the bond offering will ultimately materialize. The completion of the process is subject to receiving additional approvals, including approval from the company's board of directors, the rating agency's approval to increase the offering size, receipt of a permit from the Israel Securities Authority (ISA), and approval from the Tel Aviv Stock Exchange (TASE) to list the securities for trading.