THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS: IMMEDIATE REPORT - THE COMPANY'S CASH FLOW

Miscellaneous
* Asterisks denote mandatory information
Name of Announcer *	THE ISRAEL ELECTRIC CORPORATION LTD.
Company Registration No.	520000472
Announcement submitted on behalf of	THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS
Announcement is submitted with respect to *	THE ISRAEL ELECTRIC CORPORATION LIMITED - BONDS
Announcement is submitted by *	David Yahav
Designation *	Legal Counsel
Date & Time of Broacast	21-Mar-2012 21:32:50
Announcement No.	00102
Price Sensitivity	No

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Announcement Title *

Immediate Report - The Company's Cash Flow

Description

Pursuant to the previous reports regarding the Company's cash flow situation and regarding the Company's contacts with the Finance Ministry as well as other government institutions (see the latest report on this matter dated March 1, 2012), the Company hereby announces that yesterday, an outline of principles was formulated, the purpose of which is to solve the Company's cash flow problem until the execution of the flotation of tradable debentures to the Israeli public, which will be secured by government guarantee (see the Company's immediate report dated March 1, 2012). Most of the principles formulated are as follows: The government guarantee of the loans to be assumed by the Company or for a private offering of the Company's debentures totaling NIS 1.5 billion, release of funds that were deposited by the Company on account of the surplus collection for special accounts of the Public Services Authority - Electricity (for the purpose of implementing the company's emergency plan -stage 2), for a number of months, totaling NIS 600 million, deferral of tax payments (deductions payments) totaling NIS 200 million, and other steps to be evaluated in the future, including internal steps within the company. The outline of principles that was formulated is subject to the approval of the government institutions and the relevant authorities, as well as the approval of the Company's authorized organs, and its final details will be formulated accordingly between the parties. The Company will continue to report as is necessary, according to the law.