Bank Leumi Weighs 75 Million Shekel Repayment Demand From Liam Harish
Liam Engineering Group Harish missed Bank Leumi's financing terms for its Harish project, risking a 75 million shekel immediate debt repayment demand amid slow apartment sales.
Real estate company Liam Engineering Group Harish has failed to meet the conditions set in its financing agreement with Bank Leumi, leaving the bank entitled to demand immediate repayment of 75 million shekels. The company reported on Friday that it did not complete the conditions required to secure the credit line for the second phase of the 'Liam Village - Harish Maof' project, which combines residential, commercial, and office spaces.
According to the financing agreement, the company was required to meet a specific apartment sales target by November 1, but failed to do so. It is currently conducting talks with the bank to extend the deadline. Among the unfulfilled conditions are the pre-sale targets and the settlement of betterment levies. The company stated that it has completed the planning conditions for obtaining a full building permit, but has not yet received the payment voucher for the levy.
Due to the failure to fulfill these conditions, Bank Leumi is authorized to demand the immediate repayment of the credit it has already extended to the project, though the bank has not yet announced its intention to do so. This development may raise concerns among the company's bondholders, as delays in bank financing could hinder project progress, increase financing expenses, and erode future surpluses pledged to them.
Liam Harish raised 115 million shekels in May 2025 through its initial public offering of bonds, carrying an annual interest rate of 8%. The bonds currently trade at a gross yield to maturity of approximately 17%, reflecting the high risk premium demanded by investors. Their average life is 2.2 years, with final repayment scheduled for 2030. The company's financial report for the end of June 2026 illustrates the challenges facing the project, showing that only eight apartments had been sold by the end of June, a figure that rose to 17 by August out of 153 planned units.
