• Company also appoints JPMorgan Chase & Co. to manage sale
  • Issue will be the utility’s first dollar offering since 2014

Israel Electric Corp., the country’s state-owned utility, hired Citigroup Inc. and JPMorgan Chase & Co. to manage its first dollar bond sale in about two years, a person with knowledge of the matter said.

The Haifa-based company, which supplies a majority of the country’s power production, will seek to raise at least $500 million in the fourth quarter, the person said, asking not to be identified because the plan isn’t public. The sale will be the Israel Electric’s first dollar offering since it issued $1.25 billion in November 2014.

The utility has about 46.6 billion shekels ($12 billion) of outstanding debt, including interest, according to data compiled by Bloomberg. Its long-term rating at Moody’s Investors Service was raised to two levels above junk last month on expectation that it will continue to consolidate its finances. The company in 2014 approved a five-year plan to lower its debt by 500 million shekels a year.

Citigroup’s Tel Aviv-based spokeswoman, Sagit Lampert, declined to comment. Israel Electric’s spokeswoman also declined to comment. Patrick Burton, a London-based spokesman for JPMorgan, declined to comment by e-mail.

Israel Electric’s 5 percent dollar bonds due 2024 rose a third day, with the yield falling three basis points as of 12:22 p.m. in Tel Aviv on Monday to 3.66 percent, a record low.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE