This morning, June 14, 2018, Energy Minister, Dr. Yuval Steinitz, and the management of Israel Natural Gas Lines (INGL) opened the trading to mark the listing of the company’s Bonds on the Tel-Aviv Stock Exchange (TASE).
INGL is a government company that is wholly-owned by the state of Israel. It commenced operations in 2004 when it received a license from the State to set up and operate a natural gas transmission system for a 30-year period. The company is engaged in the planning, construction, operation and maintenance of the natural gas transmission system in Israel, which comprises facilities and pipelines on both land and sea. The company’s investments to date in the gas transmission system amount to NIS 6.4 billion, and the company ended the 2017 financial year with revenues of NIS 553 million and net income of NIS 80 million.
Energy Minister, Dr. Yuval Steinitz: “the listing of INGL’s bond series is a praiseworthy step taken by an efficient and successful government company, which will now be able to self-finance its operations through the Israeli capital market, thanks also to the concurrent enhancement of its transparency and oversight over its conduct. It is important to support the local stock exchange for the benefit of small and medium companies, thereby enabling them to raise funds in Israel, and to reduce the stock exchange tax to 10%-15% so that the public can partner the companies listed on TASE.”
Chairman of INGL, Eitan Padan: “this is a major milestone for INGL. This measure will reduce the company’s borrowing costs and will increase its financing flexibility by making it possible to raise funds from a broader public spectrum.”
TASE’s CEO, Ittai Ben-Zeev: “Following the government companies, Amidar and Israel Ports, INGL is the third government company to have listed bonds since the beginning of 2018. All these three companies have issued bonds and together have raised NIS 5 billion. Issuances by government companies are important to the Israeli economy, to the companies and to the public. The pensions of Israel’s citizens are held on the stock exchange and it is thus important that government companies make use of the Israeli capital market to raise equity and bonds, so the public can participate in the success of the Israeli companies.”
Photo credit: Guy Assiag, for no financial consideration.
