Mediterranean Towers Raises 285 Million Shekels in Institutional Bond Offering
Mediterranean Towers raised 285 million shekels in an institutional bond offering after receiving 612 million shekels in demand. The company reported strong financial results for the first half of 2026 and plans to expand its retirement home network.
Institutional Bond Offering Success
Mediterranean Towers has successfully completed the institutional phase of its new Series H bond offering, drawing high demand of approximately 612 million shekels—three times the planned capital raise. Due to the heavy oversubscription and the determined interest rate, the company opted to increase the offering size to approximately 285 million shekels, surpassing its initial target of up to 200 million shekels.
The institutional phase closed at a fixed shekel interest rate without linkage of 4.89%, reflecting a spread of about 0.89% over government bonds with a similar duration. The Series H bonds are rated A2 with a stable outlook by Midroog, feature an average life of approximately 7.3 years, and carry a final maturity date in December 2037. The offering was led by Orion Underwriting, alongside Barak Capital Underwriting, Menora Mivtachim, and Apex Issuances.
Financial Growth and Portfolio Expansion
In August, Mediterranean Towers published its financial results for the first half of 2026, reporting a 9% increase in revenue to roughly 146 million shekels, a 9% rise in gross profit to about 67 million shekels, and a net profit totaling approximately 48 million shekels. The network's equity stood at roughly 2.15 billion shekels, or approximately 3 billion shekels including deferred taxes.
The average occupancy rate across the company's facilities reached 92%. The facility in Rehovot, which opened in early 2025, continues its strong leasing momentum with an occupancy rate of around 70%, anticipating further revenues of about 200 million shekels from the project. Earlier in July, the company won a tender from the Givat Shmuel municipality to construct and operate a new retirement home in the north near Petah Tikva.
"We thank the institutional investors for their ongoing trust in our network and strategy, as reflected in the high demand during the offering," said Moti Kirschenbaum, Chairman of Mediterranean Towers. "The proceeds will allow us to advance our growth plan, adding to our four projects currently in various stages of planning and execution in Naveh Eilon, Sde Dov, Ramat Aviv, and Givat Shmuel."
The project is expected to include up to 350 housing units, a nursing ward, and commercial spaces, with total investments estimated at 700 million shekels. Mediterranean Towers, led by CEO Doron Arnon, operates eight active retirement properties with approximately 1,900 units and has another 1,000 units under development.
