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PADICO Holding to issue the first corporate bonds in Palestine

2011-05-08

Palestine Development and Investment “PADICO Holding” announced completing all preparations to launch the first corporate bonds in Palestine, where they will be officially announced during a ceremony the day after tomorrow, in the presence of Prime Minister Dr. Salam Fayyad, and official representatives, economic experts and businessmen from Palestine and abroad, in addition to representatives of Consulates and operating international institutions in Palestine.

Munib Al Masri, the Chairman of the Board of Directors "PADICO Holding" said in a statement that the company completed the necessary preparations for the first issuance of bonds in Palestine, under the supervision of regional issuance managers and advisers, and in coordination with the relevant official bodies in the Palestinian National Authority.

Al Masri assured that “PADICO Holding is progressing in a confident pace for expanding its investment projects through the issuance of such bonds, as well as to diversify tools and sources of financing at suitable cost”. He also expressed his thanks to all concerned parties, which contributed to the success of the process of issuing bonds, particularly the Palestinian Monetary Authority, the Palestinian Capital Market Authority, in addition to local and regional experts and advisers.

Al Masri said: the issuance of corporate bonds is consistent with the vision of PADICO’s investment and financing strategy, which was initiated since the year 2008 through the restructuring of its investments, which will contribute to enable PADICO Holding and its subsidiaries and affiliates from entering gradually vital new projects that will enhance the economic development in Palestine on one hand, and on the other hand to provide appropriate financial returns for the company over the coming years that will help a sustainable investment growth and promoting the company"s financial position.

For his part, the CEO Samir said that the first issuance of corporate bonds in Palestine is part of the restructuring of debt, and to enable "PADICO Holding" and its subsidiaries and affiliates from entering vital investment projects, and develop to locate Palestine on the regional financial map, and to redirect attention to the investment opportunities in the Palestinian territories.

Hleileh indicated that “the investment plan of PADICO Holding for the coming years provides for investment in projects and vital sectors that need to expand and strengthen the financing capacity, and that is to be met by issuing corporate bonds”.

He added: the step of issuing corporate bonds will open new doors for the private sector to strengthen its financing capacity and investment portfolios, and also to contribute in the diversification of financing instruments and self-borrowing from local and regional markets, which will help in locating Palestine on the world financial rating map, and will be a leverage for the advancement of the Palestinian economy and to enable institutions to contribute  in building an independent Palestinian state that is capable to achieve a growing and sustainable economy at the same time".