PLAZ Plaza Centers N.v.

RNS Number:7362Z
Plaza Centers N.V.
05 July 2007

5 July, 2007


                   PLAZA CENTERS N.V. ANNOUNCES RESULTS OF A
                   PRIVATE ISSUANCE OF DEBENTURES IN ISRAEL


Plaza Centers N.V. ("Plaza" or the "Company"), a leading emerging markets
property developer, today announces that it has agreed with Israeli
institutional investors to issue an aggregate principal amount of approximately
New Israeli Shekels ("NIS") 305 million (approximately Euro53.3 million) Par Value
of series one of unsecured non-convertible debentures to institutional investors
in Israel. The debentures are rated by Maalot - The Israel Securities Rating
Company Ltd., an affiliate of Standard & Poor's - at a local rating of A+/
Positive.



The debentures are payable in eight equal annual installments, on December 31 of
each of the years 2010 to 2017, inclusive. The debentures bear an annual
interest rate of 4.5%, payable in semi-annual installments on December 31 and
July 1 of each of the years 2007 to 2017 (the first installment to be effected
on December 31, 2007 and the last installment to be effected on December 31,
2017). Both the principal and interest of the debentures are linked to changes
in the Israeli Consumer Price Index. As described more fully below, the interest
rate on the Debentures will be increased so long as the debentures are not
registered for trade on the Tel Aviv Stock Exchange (the "TASE").


As the Company's functional currency is the Euro, the Company will hedge the
future expected payments in NIS (principal and interest) to correlate with the
Euro.


The debentures also provide that the debentures will be prepaid by the Company,
inter alia, at the option of the trustee or the holders of the debentures if the
Company delays the publication of its financial reports for more than 60 days
from the dates provided by applicable law or if the debentures cease to be rated
for a period of more than 60 days.


The debentures will be listed for trade on the Institutional Retzef System,
which is a trading system for institutional investors in Israel. The Company may
also, in its sole discretion, register the debentures for trade on the TASE.  So
long as the Debentures are not registered for trade on the TASE, the Company has
undertaken (i) to pay an additional interest at an annual rate of  0.5% (namely
5%) until a prospectus is published for the registration of the debentures for
trade on the TASE; (ii) to pay an additional interest rate at an annual rate of
0.25% in the event the rating of the debentures decreases to (BBB+) rating on a
local scale by Maalot - The Israel Securities rating Company Ltd. or an
equivalent rating by another Rating Company and (iii) to prepay the debentures
at the option of the trustee or the holders of the debentures if made a special
resolution on their general meeting upon the occurrence of each of the following
events: (A) Should the rating of the debentures in Israel decrease below the
BBB+ investment level rating of Maalot - The Israel Securities Rating Co. Ltd.
or other equivalent rating by another rating company; (B) if the Company is
required to prepay another series of debentures issued by the Company; or (C) if
the holdings of Elbit Medical Imaging Ltd., the indirect parent of the Company,
fall below 25% of  the Company's issued and outstanding share capital.  Such
undertakings would be terminated upon the registration for trade of the
debentures on the TASE.


Commenting on the approval, Ran Shtarkman, President and CEO, Plaza Centers N.V.
                                                                           said:



"As we indicated to shareholders in our announcement on 30 May, our A+/Positive
rating from Maalot has enabled us to issue corporate bonds in the Israeli
Institutional Market to finance our growth. Maalot's rating is based on issuance
of up to US$400 million, and following the registration of our debentures on the
TASE we can issue additional debentures at these favorable interest rates. This
will provide us with significant financial flexibility and firepower both to
drive our ongoing development programme and to further diversify and enrich the
Company's portfolio through the development of high quality shopping and
entertainment centers and other mixed used projects both in the Central and
Eastern European region and India."


                                             For further details please contact:
                                                               Plaza

                                          Mordechay Zisser, Chairman +972 3 6086000

                                    Ran Shtarkman, President and CEO +36 1 462 7221

                                                     Roy Linden, CFO +36 1 462 7105


                                                  Financial Dynamics

                                   Stephanie Highett/ Dido Laurimore +44 20 7831 3113


                                                                Notes to Editors


  * Plaza Centers N.V. (www.plazacenters.com) is a leading emerging markets
    developer of shopping and entertainment centres, focusing on constructing
    new centres and, where there is significant redevelopment potential,
    redeveloping existing centres, in both capital cities and important regional
    centres. The Company is an indirect subsidiary of Elbit Medical Imaging Ltd.
    ("EMIL"), an Israeli public company whose shares are traded on both the Tel
    Aviv Stock Exchange in Israel and the NASDAQ Global Market in the United
    States.


  * Plaza Centers is a member of the Europe Israel Group of companies which is
    controlled by its founder, Mr Mordechay Zisser.  It has been active in real
    estate development in emerging markets for over 10 years



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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