To increase liquidity: Halman Aldubi’s provident fund borrowed NIS 15 million towards the bond payment
Reports that “the company has a negative working capital of NIS 25 million,” but claims that it has no liquidity problem and presents a positive cash flow from current activity on bank credit: “Part of a normal business transaction”
Halman Aldubi Provident and Pension, which operates one of the four default pension funds selected by the State, is working to receive a bank loan in the amount of NIS 15 million, in addition to arranging credit lines at the company. For Halman Aldubi, this is the first bank credit line of its kind, with the investment bank’s provident and pension company paying NIS 19.5 million to its bondholders at the beginning of October.
This is a five-year loan. The company said in response that, “As part of its normal course of business, the Company is adjusting and improving its sources of credit, inter alia in order to finance its operations as a result of an increase in the volume of activity and in financing marketing and sales activities intended to continue the growth of the investment house and the provident company.”
From the standpoint of the Halman Aldubi group, the move is intended to provide a solution to the working capital needs of the company, compared with its investment in growth activities, mainly with respect to the steps that accompany its success as the default pension fund, alongside the funds of Altshuler Shaham, Psagot and Meitav Dash.
According to sources in the Company’s environment, the Group operates without credit facilities, and this is the first framework, while it is quite possible that the Group will arrange additional credit facilities. The outstanding debt to bond holders is currently NIS 102 million, with yields on bonds currently at only 2.8%. In its financial statements, Halman Aldubi Gemel and Pension noted that as at the end of December 2018, “the Company has negative working capital of NIS 25 million, deriving mainly from lease payments, principal and interest on bonds, an increase in the fund to pay to a related party after the Company’s decision to make early repayment And an increase in activity with suppliers after the Company won a default pension fund. ”