Mirland raises EUR 43m through bond issue

Russian residential and commercial property developer Mirland Development Corporation said it has raised about $63 mln (EUR 43 mln) through a bond issue.

Mirland chief executive Moshe Morag said in a statement the funding will provide the company with greater financial flexibility and enhance its ability to deliver on its property pipeline.

Mirland said it has raised the new funding through the issue of 39,260,000 New Israeli Shekel (NIS) A Series bonds and 204,874,000 NIS B Series bonds. Both issues are to be redeemed in six annual, equal and consecutive payments on 31 December for each of the years between 2010 and 2015. Interest is payable on the A series bonds at the rate of 6.5% linked to the Israeli consumer price index and on the B Series bonds at the rate of LIBOR plus a margin of 2.75%, linked to the NIS/US dollar exchange rate.

Companies linked to Eliezer Fishman and the Fishman family which indirectly controls Mirland have subscribed to nearly $35 mln of the B Series Bonds. Advisors of the company's independent directors have deemed the bond issuance terms to be fair and reasonable.