Simad collapse tests Israeli bond market as US sponsors seek fresh capital
Simad Holdings’s collapse is raising renewed questions about the Israeli bond market’s appetite for US real estate and operating-company issuers, following the company’s rapid default after raising debt in Tel Aviv.
A new article in The Real Deal explains how the fallout has not eliminated interest from US sponsors seeking Israeli bond financing, even as investors, advisors, and market participants reassess diligence standards and disclosure risks following Simad’s collapse.
Yariv Ben-Ari, co-chair of Herrick‘s Israel Practice, was quoted in the article discussing both continued sponsor demand and the difficulty of identifying intentional misconduct in a financing process.
“Over the last month, I would say I probably fielded calls for almost a dozen sponsors who are interested in raising bond money for their projects. If somebody wants to hide something that’s not otherwise available in a public record, or to be placed on a public record and commit fraud, that’s not something you can necessarily always protect against or identify in a deal.”
The article frames Simad’s collapse as a potential stress test for the Israeli bond market rather than a complete shutdown of the channel. While the case may lead to tougher questions for issuers and advisors, sponsor interest suggests that Israeli institutional capital remains an attractive financing source for US real estate and operating businesses.
Read more in The Real Deal.
