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Steinmetz's Scorpio raises 500 Mln Shekels from investors

Scorpio Real Estate Ltd., an Israeli company controlled by diamond entrepreneur Benny Steinmetz, raised 500 million shekels ($119 million) in a bond sale to institutional investors to fund projects in eastern and central Europe.

The bonds carry a 6.25% interest rate, Poalim IBI Ltd., who managed the sale, said in an e-mailed statement. Scorpio originally offered to sell 300 million shekels in bonds at a minimum interest rate of 6.25% and a maximum of 6.75%. As demand for the bonds reached 1 billion shekels, the company increased the sale to 500 million shekels. The entire amount was sold at the minimum interest rate, Poalim IBI said. Scorpio, which operates in countries including Romania, Hungary and Poland, may enter Russia, Ma'alot-The Israel Securities Rating Co. said December 26. The company has 15 projects under development, including nine residential buildings and six commercial complexes, though most are not yet under construction, Ma'alot said. (Bloomberg)