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14 September 2008
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ISRAEL DISCOUNT BANK RAISES NIS 945 MM IN SUBORDINATED CAPITAL NOTES WITH MARKET DEMAND OF NIS 1.3 BILLION.
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Israel Discount Bank Limited (TASE:DSCT) (“the Company”), Israel’s third largest bank, announced today that it has raised
NIS 945MM in subordinated capital notes. The original offering was for NIS 300MM. Market demand for the offering exceeded NIS 1.3 billion.
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Dorit Bensimon, EVP and Head of Finance Division was quoted – “The oversubscription of the offering bears testimony to the confidence of both institutional
and other investors in Israel Discount Bank. Strong market demands,
together with attractive pricing, have been the key characteristics of recent offerings of Israel Discount Bank”.
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The subordinated capital notes offering comprised two series – NIS 519MM was raised in a
CPI-linked series with a yield of 4.44% and an additional NIS 426MM at a yield of 6.72%.
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The amount raised by this instrument is the largest ever by any Israeli bank. The only other Israeli bank ever to have raised Hybrid Tier 1 Capital is Bank Hapoalim. This instrument is common among the world’s leading banks, and it is issued in compliance with the recommendations of the Basel Committee on Banking Supervision. The advantage of this instrument is the fact that it enables the expansion of Tier 1 capital without issuing shares and without dilution of existing shareholders.
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The notes are rated AA- by Ma’alot S&P and Aa2 by Midroog rating agency.
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About Israel Discount Bank
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Israel Discount Bank is the third largest bank and a leading financial group in Israel. With nationwide coverage, and a strong and growing domestic franchise, Israel Discount Bank provides a full spectrum of corporate and retail financial products and services to its clients, both in Israel and key financial centers around the world. Israel Discount Bank is a member of and is traded on the Tel-Aviv Stock Exchange under the ticker DSCT. For additional information, please visit the Company’s investor relations website at www.discountbank.co.il/IR
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Investor Relations Contact
Barry Simon
Investor Relations
Tel: +972 3 5146593
barry.simon@discountbank.co.il
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