Byline: Nurit Dror
The use of corporate bonds to raise capital accelerated at the beginning of 2002. NIS 3.2 billion was raised in the first quarter of the year, compared with NIS 7.7 billion in all of 2001.
The reduction of the prime interest rate in December 2001 by 2% to an unprecedented low of 5.3% led to an increase in all types of corporate bond issues. These included the issuing of new bond series, expansion of existing series, private allocations of non-negotiable bonds, and issues and private allocations of convertible bonds. NIS 1.9 billion, amounting to 60% of the capital raised, was from negotiable securities.
The commercial banks began …