Wednesday, December 05, 2007
Portfolio Reshuffling Completed
I completed the reshuffling of my portfolio selling all TEVA and buying Israel Corp. This holding company owns 98% of Zim Integrated Shipping Services Ltd. (“Zim”), the 16th largest container shipping company in the world. Zim operates a large fleet that offers a variety of global services and close to 40 regional services, reaching every continent and calling on hundreds of ports worldwide. Zim has a recognized reputation for providing fast, reliable and competitive door-to-door global services based on its integrated sea and land transportation system. Through a network of global subsidiaries and affiliated companies in Israel and abroad, Zim is engaged in a wide range of activities. This network includes shipping agencies acting as the Company’s general agents, while the subsidiaries offer various transport-related services such as logistics, freight-forwarding, land transport, river transport and more.
Oil Refineries Ltd. (TASE:ORL) yesterday raised NIS 1.8 billion in a bond issue. The offering was oversubscribed three-fold. The offering is part of Oil Refineries' preparations for implementing its strategic plan. The company plans to invest $1.1 billion to upgrade its refinery, expand international activity, improve infrastructures, and meet stricter environmental regulations. Part of the proceeds will be used to pay back bank loans. Oil Refineries raised NIS 473 million in Consumer Price Index (CPI) linked bonds at 4.8% interest with an average duration of 7.5 years, NIS 843 million in CPI-linked bonds at 4.6% interest with an average duration of 5.5 years, and NIS 500 million in unlinked bonds at 6.5% interest with an average duration of 4.6 years. Oil Refineries is owned by Ofer Brothers subsidiary Israel Corp. (TASE: ILCO), Israel Petrochemical Enterprises Ltd. (TASE:PTCH) and in an infinitesimal portion by the Israeli Water Engineer.