Delek Drilling Looks to Refinance $2 Billion in Debt

Ari Rabinovitch
Monday, June 29, 2020

Israel's Delek Drilling wants to refinance about $2 billion in loans it had taken to develop the major Leviathan natural gas field either by issuing bonds or through bank finance.

The company said in a statement on Monday it approached international credit rating agencies regarding a possible bond issuance of about $2.5 billion, which will be backed by "Leviathan project assets". It said it received an indicative rating of "BB", which is similar to a rating of "AA" in Israel.

Delek Drilling, a subsidiary of energy conglomerate Delek Group, has total financial debt of $3.4 billion. It is a partner in two of Israel's largest offshore natural gas fields, Tamar and Leviathan.

The company on Sunday reported first quarter net profit of $84.3 million, up 110% from a year earlier. Revenue jumped 97% to $186.7 for the period, boosted by the start of production at Leviathan, which supplies Israel, Jordan and Egypt. 

(Reporting by Ari Rabinovitch; Editing by Tova Cohen)

Categories: Energy Middle East Industry News Activity Mediterranean

Related Stories

Turkey Objects to Greece’s Chevron Energy Deal in Eastern Mediterranean

Trump Calls Out California, UK Energy Deal

ADNOC, RWE Explore LNG Supply Deal as Germany-UAE Deepen Ties

Current News

Turkey Objects to Greece’s Chevron Energy Deal in Eastern Mediterranean

MOL’s Geoinform, Baker Hughes Team Up for Oil and Gas Tech

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Akrake Achieves First Oil at Sèmè Field as Parent Firm Reviews Options

Subscribe for OE Digital E‑News