Israel's Delek, Avner raise $2B in bonds for Leviathan gas field


Delek Drilling (DKDRF) and Avner Oil (AVOGF) have raised $2B in international bonds that the companies will use to finance the development of the massive Leviathan natural-gas field off the coast of Israel.

The offering attracted demand of $13.5B and was over-subscribed by 650%.

Avner and Delek Drilling, which are subsidiaries of Delek Group (DGRLY), hold a combined 45.34% in Leviathon, while Noble Energy (NBL) owns a stake of 39.66% and is the field's operator. Ratio Oil (RTEXF) holds the remaining 15%; Australia's Woodside Petroleum (WOPEF) has agreed to buy 30% from the partners.

ETFs: GHYG, IBND, PICB, CEMB, GLCB

Comments (3)
  • User 509088
    , contributor
    Comments (1733) | Send Message
     
    i hadn't heard they'd solved the ownership issues of that field yet. doesn't it stretch through several political jurisdictions?
    11 May 2014, 06:19 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3415) | Send Message
     
    hmmm Putin cant be happy
    11 May 2014, 08:09 AM Reply Like
  • JB204zz
    , contributor
    Comments (92) | Send Message
     
    This is a long-term investment, but could lead to some profound geopolitical changes. The ownership agreements, not jut Israel and Arab countries, but Cypress, Israeli energy independence, European supply agreements, LNG and on. I've been long NBL and enjoy investing for this reason. There are other potential undiscovered fields in the area. You are also right about Putin feeling unease with this operation.
    11 May 2014, 09:10 AM Reply Like
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