Namco raises debt, Isras repays: opposing capital moves in the real estate market

While American real estate company Namco Realty is expanding an existing bond series and adding approximately ₪110 million in debt, Israeli investment company Isras is executing the reverse move, partially repaying another series by about ₪27 million.

Two prominent real estate companies on the Tel Aviv Stock Exchange have executed opposing moves in their debt management: Namco Realty, an American income-producing real estate company, raised approximately ₪110.2 million via a bond series F expansion. Concurrently, Isras, an Israeli real estate investment company, carried out a partial repayment of about ₪27 million in series 18 bonds.

The Tel Aviv debt market continues to serve as an active arena for real estate companies, but with contrasting moves. While American income-producing real estate company Namco Realty is turning to the local market to raise additional capital, veteran investment company Isras is working to reduce its liabilities. Namco reported the completion of a fundraising round of approximately ₪110.2 million, and concurrently, Isras reported a partial repayment of one of its bond series amounting to about ₪27 million. The two moves, which occurred days apart, highlight the differing financial strategies pursued by companies in the sector.

### Namco continues to raise capital in Tel Aviv
Namco Realty, controlled by businessman Yigal Namdar, completed a debt fundraising round via a private placement that expanded its series F bond series (security number: 1223171). The company allocated 110,220,441 par value of the series, thereby increasing its total volume from approximately ₪350 million to approximately ₪460.2 million - growth of about 31.5%. The allocation, executed with a limited number of investors, indicates the confidence that institutional entities place in the company, despite the challenging interest rate environment. This fundraising adds to Namco's substantial debt burden toward investors in Israel. Following the series expansion, the company's total debt across its five traded bond series (B, D, E, F, G) amounts to approximately ₪3.09 billion.

Namco, registered in the British Virgin Islands with its center of operations in the U.S., specializes in owning and managing income-producing real estate, primarily shopping centers. Similar to other American real estate companies, it utilizes the Tel Aviv capital market as a source for debt raising, typically under terms considered more favorable than those in the U.S. market. The successful private placement provides Namco with additional financial flexibility, although the filing did not detail the intended use of proceeds. It is likely that the funds will be used to expand its operations or refinance existing debt.

### Isras acts to reduce debt
In contrast to Namco's expansion trend, Isras - Investment Company Ltd. (TASE: ISRS) executed a debt reduction move. The company reported a partial repayment of its series 18 bonds (security number: 6130280). According to the filing, the company redeemed 27,062,637 par value of the series on October 11, 2026. Consequently, the remaining debt in this series decreased from ₪739.7 million to approximately ₪712.6 million. The repayment was executed through the TASE clearinghouse, and the trustee for the bondholders is Mizrahi Tefahot Nominee Company Ltd.

Isras, controlled by Shlomo Eisenberg, is one of Israel's oldest and largest income-producing real estate companies, with an extensive property portfolio across the country. The partial repayment move, although not of a dramatic scale, may indicate a proactive debt management strategy and a desire to lower financial leverage, or simply the utilization of free cash flow to reduce financing expenses. The opposing actions of Namco and Isras – debt raising versus debt repayment – reflect the complex dynamics in the real estate market and the different ways in which companies, whether international entities raising capital in Israel or domestic ones, navigate the financial challenges and opportunities facing them.