Following planned equity IPO, company set to hold Netz Usa also weighs debt issuance via bonds

Just a week after it was reported that the controlling shareholders of Netz Usa intend to float a new holding company, the designated entity, Daniel Deposits, announces it is also weighing a new bond series issuance. This dual move points to extensive capital-raising plans.

The controlling shareholders of real estate company Netz Usa are advancing the establishment of a new holding company to hold the controlling stake in Netz Usa. Having previously announced plans for an equity IPO, the new entity, Daniel Deposits, is now reporting that it is also weighing the issuance of a new floating-rate bond series (Series G), alongside the equity offering.

Strategic plans surrounding real estate company Netz Usa are expanding: about a week after the controlling shareholders reported they were weighing an equity offering for a new holding company that would consolidate their holdings, another report has emerged pointing to broader capital-raising intentions. The new company, Daniel Deposits Ltd., reported now (2026-01-090575) that it is weighing the issuance of a new series of bonds (Series G), concurrently with the planned equity offering. This dual move of simultaneous equity and debt raising signals an active financial strategy at the parent company level even before the corporate restructuring is completed.

As a reminder, the original plan, reported at the end of September (2026-01-089180), involves a strategic ownership restructuring. Under this plan, the controlling shareholders of Netz Usa, which operates in US income-producing real estate, are considering transferring their holdings to Daniel Deposits, and subsequently floating the shares of the new holding company to the public on the Tel Aviv Stock Exchange. This move, which has already advanced to the filing of a prospectus draft with the Israel Securities Authority, will create a pyramid with public Netz Usa at its base and a new public holding company above it.

Now, the plan is expanding to the debt arena as well. According to the new report, Daniel Deposits is weighing the issuance of Series G bonds based on an existing shelf prospectus. If issued, the bonds will carry a floating interest rate based on the Bank of Israel interest rate plus a fixed margin not to exceed 0.18%. The company intends to first hold a tender for classified investors, who will receive an early commitment fee. This move is designed to raise capital in the debt market, which can be used for a variety of purposes, such as funding operations, refinancing existing debt, or creating financial flexibility for the new holding company.

The combination of a planned equity offering (IPO) and the evaluation of a bond issuance indicates the controlling shareholders' intention to establish the new holding company as a significant player in the capital market, with the ability to independently raise both equity and debt. The debt raise can be executed relatively quickly under a shelf prospectus, providing the company with liquidity even before the completion of the equity IPO process, which is more complex and lengthy. The capital raised from the bonds may be used to strengthen the holding company's balance sheet ahead of the equity offering, or to fund new business opportunities.

At the same time, both the company and the controlling shareholders emphasize that both moves – the equity offering and the bond issuance – are still in the evaluation stages and no final decision has been made regarding them. Their realization depends on a series of factors, primarily the receipt of required approvals from the board of directors, the Israel Securities Authority, and the stock exchange, as well as prevailing market conditions at the time of execution. The market will now monitor both moves concurrently, pointing to a clear strategic direction by the controlling shareholders of Netz Usa.