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Commentary & Deal Flow

LAUNCH: Mizrahi US$750m 10.25nc5.25 T2 Sub Notes @T+210

IGC European Market: Deal Flow - GeneralIGC US Market: Deal Flow - General

Mizrahi-Tefahot Bank Ltd (MZRHIT), exp issue ratings BBB-/BBB by S&P/Fitch (issuer ratings BBB+/A- by S&P/Fitch), US$ benchmark 144A/Reg S (Cat 2) 10.25nc5.25 fixed rate reset Tier 2 subordinated notes due 4/15/36. Reset Date: 4/15/31. GS (B&D)/HSBC/Jefferies as JGCs/JBRs. Interest: Fixed rate, payable semi-annually in arrear at [•]% per annum from the Issue Date to the Reset Date. From and including the Reset Date to (but excluding) the Maturity Date, the sum of the US Treasury Rate determined on the Reset Determination Date and [•] bps. Optional Redemption: Redeemable at the option of the Issuer, in whole but not in part, at par at any time during the period commencing on (and including) 15 January 2031 (three months before the Reset Date) and ending on (and including) the Reset Date, subject to certain conditions including regulatory approval, if then required. Special Event Redemption: redeemable at the option of the Issuer, in whole but not in part, at par upon occurrence of a Regulatory Event or a Tax Event, subject to certain conditions including regulatory approval, if then required. UOP: gcp. Pricing 1/8. Settle 1/15.

IPTs: T+240 area.

GUIDANCE: T+210#.

LAUNCHED: $750m 10.25nc5.25 at T+210. Books >$2.5bn.


OTHER:

Status

Tier 2 Subordinated Notes unsecured and subordinated, ranking junior to all senior instruments, pari passu amongst themselves and with other Tier 2 Instruments, and senior to Additional Tier 1 instruments (should any instruments be issued in the future by the Issuer) and ordinary shares and preference shares

Trigger Event

The earlier of:

  • Trigger Event for Principal Loss Absorption: CET1 Ratio < 5%, or,
  • Trigger Event for Non-Viability: Earlier of (a) a notice in writing addressed to the Issuer from the Relevant Regulator that, in its opinion, a conversion of the Securities is necessary to avoid the Issuer reaching the point of non-viability or (b) a decision to inject capital from the public sector, or support of equal value to the Issuer without which the Issuer will reach the point of non-viability, as determined by the Relevant Regulator

Loss Absorption

If a Trigger Event for Principal Loss Absorption occurs, then the outstanding principal amount of the Notes will be written down by an amount sufficient to restore the Issuer’s CET 1 Ratio to 5%. Such a write-down will be pro-rata with the other Tier 2 Securities with similar loss absorption features.

If a Trigger Event for Non-Viability occurs, then the principal amount of the Notes will be written down in full.

Denominations

$200k x 1k

Listing

Tel Aviv Stock Exchange (TASE-UP)

Use of Proceeds

General corporate purposes

Documentation

Standalone, Preliminary Offering Memorandum dated 7 January 2026

Governing Law

New York law, except for waiver of set off and subordination provisions governed by the laws of Israel

ISIN

IL0012338088

Selling Restrictions

MIFID II AND UK MIFIR - PROFESSIONALS/ECPS-ONLY / NO PRIIPS OR UK PRIIPS KID – Manufacturer target market (MIFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK. No sales to retail clients (as defined in COBS 3.4) in the UK. No sales to retail clients in the EEA, as defined under MiFID II.

No sales to investors in Israel who do not qualify as institutional investors under the First Addendum to the Israeli Securities Law or who have not been approved as qualified institutional investors by the Israel Securities Authority according to the Israeli Securities Law.

Sales into Canada

Yes - Exemption

Stabilization

FCA/ICMA