State Missile Manufacturer Tomer Plans 500 Million Shekel Debt Offering
State-owned missile engine manufacturer Tomer plans to raise up to 500 million shekels via institutional bonds to expand production lines amid surging global and domestic defense demand.
The state-owned company Tomer, which manufactures propulsion systems for the Arrow air defense missiles among other defense products, is preparing for its first institutional debt offering to finance the expansion of its manufacturing capacity. According to financial reports, the company intends to raise at least 300 million shekels, with the maximum issuance framework set by the Government Companies Authority reaching 500 million shekels.
Expanding Production for Global Demand
The fundraising is scheduled to take place by the end of the year through institutional bonds, similar to Rafael's financing model. This approach ensures that Tomer will not become a public company and will not be required to comply with standard disclosure regulations, given that the majority of its operations remain classified. Tomer serves as a key subcontractor for Israel Aerospace Industries and Elbit Systems, producing rocket motors for the Arrow 3 and Arrow 4 missiles, Shavit satellite launch vehicles, Barak MX systems, RAMPAGE air-to-surface missiles, and PULS artillery rockets.
"Tomer's financial data demonstrates the company's maturity and robust operational growth amid soaring global defense demand," financial analysts note.
Financial Targets and Growth Projections
The surging demand for missile systems, driven by the ongoing arms race in Israel and worldwide, has prompted Tomer to expand its production lines and increase its workforce to approximately 1,000 employees. This expansion is further supported by the IDF's heavy procurement of Arrow missiles and major export deals, including a landmark agreement with Germany.
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Sales since the beginning of the year totaled approximately 850 million shekels, outperforming targets by about 150 million shekels.
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The company aims to increase its annual sales to roughly 1.8 billion shekels by 2030.
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Workforce projections expect total personnel to reach 1,400 employees by the end of the decade.
Government Companies Authority deputy head Maayan Harel has set an objective for Tomer Chairman Roni Morino, CEO Dotan Gabay, and senior management to successfully complete the debt raising process by the close of the year to support ongoing corporate scaling.
