Development of Leviathan Natural Gas Field in Israel

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 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 a 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 reported a 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.