Amid the booming bond market, Rafael Advanced Defense Systems is to issue a private bond of NIS 500 million-1 billion. The Rating agency is expected to rate the bonds AAA, the same rating as Rafael’s previous bond issues.
Rafael currently has one index-linked bonds in circulation, issued 11 years ago, which bears 4.7% nominal interest. Full repayment of the bonds is expected by the end of 2018.
Rafael develops advanced weapons, with an emphasis on missiles. Among other things, the company developed the Iron Dome system for defense against short-range missiles and the Trophy system for active defense of tanks and armored military vehicles.
The Midroog analysts wrote that, “The company enjoys a high probability of state support, if necessary, which is a positive factor in the rating. Despite its orientation to the domestic market, Rafael has diversified its business with a variety of projects and territories, including developing markets with growth potential … the company is allocating resources to future growth engines adapted to the current and future battlefield in communications, intelligence, information processing systems, defense systems, and urban warfare solutions.”
