U.S. real-estate developers are joining the largest wave of local debt issuance on the Tel Aviv Stock Exchange bond trading platform since 2007, capitalizing on yield-starved investors to obtain financing.
Companies have sold $14.6 billion of bonds this year through Nov. 20, up from $8.7 billion in the same period of 2013, according to bourse data. New York real-estate firms, including Extell Development Co. and Zarasai Group Ltd., have joined the boom, issuing a total of $436 million. It’s now about 0.12 of a percentage point cheaper for borrowers to sell bonds in shekels and convert to dollars than it is to issue in greenbacks directly, data compiled by Bloomberg show. A year ago, shekels were about 0.69 percentage point costlier to borrow.