Greystone raises $160 million in inaugural bond offering amid strong investor support
- Greystone Senior Debt BI, LTD. raised approximately $160 million through a bond offering in Israel.
- The bonds were oversubscribed and are set at a 6.35% fixed coupon rate with a five-year term.
- The successful completion of this offering underlines Greystone's growth ambitions and positive market reception.
In a significant development for the real estate finance sector, Greystone Senior Debt BI, LTD., a subsidiary of Greystone Senior Debt Fund, has successfully concluded its inaugural bond offering. This event took place on December 3, 2024, on the Tel Aviv Stock Exchange, marking a landmark achievement for the company as it ventured into the Israeli market. The firm initially targeted to raise $100 million, but due to overwhelming investor interest, the final amount raised was approximately $160 million, indicating a strong demand in the market. The bond issuance consisted of 583,724,000 of NIS denominated unsecured bonds, which received an Aa3.IL rating from Midroog, an affiliate of Moody's in Israel. The bonds offer a fixed coupon of 6.35% with a maturity period of five years, featuring an interest-only payment structure for the first four years. This financial strategy is aimed at attracting investors seeking stable yields in a competitive environment. Greystone plans to utilize the proceeds from this offering to further invest in new bridge loans within its Senior Debt Fund, which is designed to provide pathways to long-term U.S. government-backed debt offerings. This includes financing options through agencies such as Fannie Mae, Freddie Mac, and HUD. The initiative showcases Greystone's commitment to expanding its lending platform while also addressing the funding needs of its clientele. The company's CEO, Steve Rosenberg, expressed enthusiasm about the strong oversubscription of the bonds, emphasizing the positive reception from investors. He noted that this confidence accentuates Greystone's aspirations to exceed stakeholder expectations and to foster growth for both clients and the company itself. The participation of Leader Capital Markets as the book runner and lead underwriter, along with Infin Capital as a co-distributor, highlights the collaborative effort involved in the successful execution of this bond offering and sets a precedent for future endeavors.