Delek Drilling sells $2.25 bln of bonds to finance Leviathan gas field

Israel's Delek Drilling said on Wednesday it will pay an average interest of 6.28% in a $2.25 billion international bond offering to help it finance development of the Leviathan natural gas project off Israel's Mediterranean coast.

JERUSALEM, Aug 5 (Reuters) - Israel's Delek Drilling DEDRp.TA said on Wednesday it will pay an average interest of 6.28% in a $2.25 billion international bond offering to help it finance development of the Leviathan natural gas project off Israel's Mediterranean coast.

Following a road show, Delek said demand in the bond issue -- divided into four series expected to mature in 2023, 2025, 2027 and 2030 -- reached $7 billion, with over 90% of the amount raised coming from international investors.

The offering, it said, was the largest in the infrastructures sector in the global market since the outbreak of COVID-19, and one of the largest in 2020.

Trade in the bonds on international markets and on the Israeli TACT-Institutional will begin over the next few days.

Delek Drilling, controlled by conglomerate Delek Group DLEKG.TA, has said that after the offering it would buy back up to $50 million of its existing bonds, including those used to finance the smaller Tamar gas project.

Israel’s $3.6 billion Leviathan field - co-owned by Delek, Texas-based Noble Energy NBL.O and Ratio Oil RATIp.TA - started production in late 2019 and is already supplying gas to Israel, Egypt and Jordan.

Last month, Chevron Corp CVX.N said it would buy Noble for $5 billion in stock.

(Reporting by Steven Scheer; Editing by Tova Cohen)

((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.thomsonreuters.com@reuters.net; Twitter: @StevenMScheer))

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