Brooklyn Developer Taps Israeli Market Ending Urbancorp Drought
- Leser Group raising 125 million shekels in retap of 2026 bond
- First by North American developer since Urbancorp bankruptcy
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Brooklyn developer The Leser Group Ltd. is selling 125 million shekels ($32.5 million) of bonds in Israel, reopening a market that was shut to North American real estate companies after Canadian developer Urbancorp Inc.’s April default rattled investors.
The new issue, a retap of Leser’s 6.9 percent bonds due in May 2026, will yield 6.6 percent, according to Poalim I.B.I - Management & Underwriting Ltd., the lead manager on the deal. It originally sought to raise 75 million shekels but decided to increase the offering after getting double that demand from institutional investors, Poalim said. The yield on the existing debt increased for a third day, rising two basis points to 6.6 percent at 3:31 p.m. in Tel Aviv.