Israel’s Delek Group eyes U.S. bond offering – source

(Reuters) – Subsidiaries of Israel’s Delek Group will seek to raise up to $2 billion from a bond issue in the United States this year to invest in gas fields off Israel’s Mediterranean coast, a market source said on Tuesday. The planned offering by Delek Drilling and Avner Oil Exploration is also intended to clear an $800 million loan that financed development of the Tamar field, which began natural gas production at the end of last month.

 Tamar holds an estimated 10 trillion cubic feet of gas.

Funds from the bond offering would also be used to help to finance the development of the even larger Leviathan gas field, which the company hopes will start production around 2016, the source said. 

Officials at Delek Group declined to comment.

The Globes financial newspaper reported that JPMorgan Chase would underwrite the offering.

Texas-based Noble Energy leads the groups developing the Tamar and Leviathan fields.


Reporting and Published by Reuters.

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