Israel's classified missile-engine maker Tomer plans first bond, up to $200M

What's the deal? TomerDealroom has a profile for this one. Try Dealroom →, the state-owned Israeli manufacturer of rocket propulsion systems and missile engines, has received a preliminary ilAA credit rating from S&P Maalot ahead of a planned bond issuance of up to $200 million. It would be the company's first bond offering. The ilAA rating sits one notch below the agency's highest grade, ilAAA.

What does Tomer do? The company operates in a classified, strategically sensitive corner of Israel's defense industry, supplying propulsion used in rocket and missile systems, including the Arrow program. It was created roughly a decade ago when Israel Military Industries was privatised and sold to Elbit SystemsDealroom has a profile for this one. Try Dealroom →; the state kept the classified rocket-propulsion and missile-engine activities and moved them to Tomer.

The numbers: Tomer has reported sales of US$217.4M since the start of the year and is targeting annual sales of US$460.5M by 2030. The bond would give the classified, state-owned business access to institutional capital without a conventional public listing.

Why now? The planned raise comes as Israel pushes to finance expanded weapons production, including faster Arrow-interceptor output and a multi-year expansion of Iron Dome manufacturing. Tomer is led by chief executive officer Dotan Gabay and chairman Roni Moreno.

The signal: A secretive state-owned manufacturer tapping bond markets shows how Israel's defense buildout is spilling into capital markets, as classified producers seek private financing to keep pace with surging demand.

Read more: calcalistech.com