Azrieli Group Ltd. (AZRG IT): Results of an Offering According to a Shelf Offering Report of February 8, 2015

1. According to the Shelf Offering Report, the Company offered to the public the following securities:

  1.1. Up to NIS 700,000,000 par value of the Bonds which were offered to the public by way of a uniform offering pursuant to the Securities Regulations (Manner of Offering Securities to the Public), 5767-2007 (the "Public Offering Regulations"), in 700,000 units (the "Unit" or "Units", as the case may be), by way of a tender for the annual interest rate to be borne by the Units (the "Tender"), the composition and price of each Unit being as follows:

The Units were offered to the public by way of a tender for the annual interest rate in a uniform offering.

2. The list of subscriptions for the purchase of the Units offered to the public was opened on Monday, February 9, 2015 at 12:00 and closed on the same day at 16:30. The offering of the Series B bonds was not secured by underwriting.

3. Set forth below are the results of the Tender that was held on February 9, 2015:

  3.1. In the Tender, a total of 168 applications were received to purchase 623,310 Units at a total financial scope of approx. NIS 623,310,000 million, out of which 76 applications to purchase 615,000 Units at a total financial scope of approx. NIS 615 million, which were received according to a pre-offering commitment of accredited investors, as specified in Section 4 of the Shelf Offering Report.

  3.2. The annual interest rate determined in the Tender is 0.65% (the "Determined Interest") and hence the semiannual interest rate to be paid in respect of the Series B bonds is 0.325%, accordingly.

  3.3. The first installment of the interest in respect of the Bonds will be paid on October 1, 2015 and will be paid in respect of the period commencing on February 10, 2015, one trading day after the date of the Tender for the Series B bonds, and ending on October 1, 2015, calculated on the basis of 365 days a year, according to the number of days in the said period. The rate of the interest that shall be paid in respect of the first interest period as aforesaid is 0.415%.

  3.4. According to the terms and conditions of the Shelf Offering Report, 623,310 Units at a total par value of NIS 623,310,000 were allotted, according to the following specification:

    3.4.1. 151 applications to purchase 592,905 Units which stated an interest rate lower than the Determined Interest were accepted in full (out of which 66 applications to purchase 584,970 Units that were received in the framework of a pre-offering commitment of accredited investors, as specified in Section 4 of the Shelf Offering Report). 

    3.4.2. 17 applications to purchase 30,405 Units which stated an interest rate equal to the Determined Interest were accepted in full (out of which 10 applications to purchase 30,030 Units that were received in the framework of a pre-offering commitment of accredited investors, as specified in Section 4 of the Shelf Offering Report).

4. In view of the aforesaid, the Company shall issue to the public NIS 623,310,000 par value of registered Series B bonds.

5. The immediate gross proceeds that the Company shall receive in the framework of the Tender in respect of the Series B bonds amount to the sum of approx. NIS 623.3 million.

6. The Bonds were issued without a discount.

The Company thanks the investing public for accepting the offering according to the Shelf Offering Report.

Yuval Bronstein, CEO of Azrieli Group, stated today: "This is the Company's first financing round since its IPO on TASE around five years ago. The highly successful completion of the institutional stage attests to the capital market's faith in the Company, and will allow a further reduction of the financing costs. We intend to continue maintaining a stable capital structure, while expanding the Group's income-producing property business."

About Azrieli Group 

Azrieli Group Ltd. (TASE: AZRG) owns and operates one of Israel's largest groups of malls, retail centers and office properties. The Company is traded on the Tel Aviv Stock Exchange under the symbol AZRG IT and is included in the TA-25, TA-100 and TA Real Estate 15 indices. It is the only Israeli stock included in the EPRA Index, which is the European index of the world's largest income-producing property companies. As of December 31, 2014, the Company has a market value of approx. $15.6 billion. The Company operates mainly in Israel, and owns and manages properties with a gross leasable area of 807,000 sqm; the Company holds 14 retail centers comprising 267,000 sqm of leasable space across Israel, 9 office properties comprising 353,000 sqm of leasable space across Israel and 5 properties overseas (mainly in Houston, Texas) comprising 187,000 sqm of leasable space. In addition, the Company has 8 projects under development comprising 442,500 sqm of leasable space in Israel. 90% of the fair value of the investment property and the property under development relate to properties in Israel.

Over the past 30 years, the Group has been specializing in the development, acquisition, and management of retail centers and office space. For further information, please visit the Company's website at http://www.azrieli.com.

For further details:

Moran Goder
Head of Investor Relations, Azrieli Group
Office: +972-3-6081310
Mobile: +972-54-5608151
[email protected]