Israel’s secretive state-owned missile engine maker prepares $200 million bond sale
Tomer has received a preliminary ilAA rating from S&P Maalot ahead of its first planned bond issuance. The company reported $275 million in sales since the beginning of the year and is targeting $580 million in annual sales by 2030.
Tomer, 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.
The ilAA rating is one notch below the agency’s highest rating, ilAAA. The proposed issuance would mark Tomer’s first bond offering.
The company has reported sales of NIS 850 million ($275M) since the beginning of the year and aims to reach annual sales of NIS 1.8 billion ($580M) by 2030. The bond issuance could provide additional financing as it seeks to expand its business, although the final terms of the offering have not been disclosed.
Tomer was established roughly a decade ago as part of the privatization of Israel Military Industries (IMI), which was sold to Elbit Systems. The state retained ownership of IMI’s classified rocket-propulsion and missile-engine activities, which were transferred to the new company.
The company operates in a strategically sensitive segment of Israel’s defense industry, supplying propulsion technologies used in rocket and missile systems. Its activities are closely tied to national security requirements, making it distinct from privately owned defense manufacturers operating in the same sector.
Tomer is led by CEO Dotan Gabay and chairman Roni Moreno. The planned bond issuance would give the company access to the capital market as it pursues its longer-term growth target.
