Koor Industries Ltd. (KOR.TV) said Thursday it will issue 200 million shekels ($52.6 million) in bonds to help finance investment in Credit Suisse Group AG (CS).

The bonds were recently given an expected rating of A+ by Standard & Poor's Israeli subsidiary Maalot Ltd., and A1 by Moody's Israeli unit Midroog Ltd.

Annual interest on the bonds will be 3.75% and will be paid every six months. The bonds, which will be issued through a tender on the Tel Aviv Stock Exchange Thursday, will be repaid in five annual payments from March 2011.

Koor, a holding company, has been buying and selling shares in Credit Suisse since July 2008. On Wednesday, Koor said it holds 29.28 million shares in Credit Suisse, or 2.47% of the Swiss banking company.

At 0800 GMT, shares in Koor were up ILS0.50, or 0.44%, at ILS113.00, in a higher Tel Aviv market.

-By Sara Toth, contributing to Dow Jones Newswires; saratoth@gmail.com