Alony Hetz

Capital/Financing Update • Sep 16, 2025

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Ramat Gan, September 16, 2025

To:

Israel Securities Authority Via MAGNA

Tel Aviv Stock Exchange Via MAYA

www.isa.gov.il www.tase.co.il

Subject: Alony – Hetz Properties and Investments Ltd. ("the Company") – Intention to Raise Debt by Way of Initial Offering of Bonds

(Series 16 and Bonds (Series 17))

The Company is honored to hereby notify that it intends to examine the possibility of raising debt from the public, by publishing a shelf offering report according to which bonds (Series 16 and Bonds (Series 17)), which will be issued for the first time, will be offered to the public in a uniform offering, ¹⁰¹ by way of an auction on the interest rate, all pursuant to the Company's shelf prospectus as published on April 16, 2024, dated April 17, 2024 (Reference No.: 2024-01-038131), and in accordance with the drafts of the trust deeds for Bonds (Series 16) and Bonds (Series 17) published by the Company on September 15, 2025 (Reference No.: 2025-01-069490).

The Company intends to conduct tomorrow, Wednesday, September 17, 2025, a classified investors auction¹⁰² with no limitation on the maximum interest rate, and with an early commitment fee of:

A.) Bond units (Series 16) – 0.9% of the total consideration received for these units for which the classified investors committed to submit requests in the public auction.

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

B.) Bond units (Series 17) – 0.8% of the total consideration received for these units for which the classified investors committed to submit requests in the public auction.

(hereinafter: "the classified investors auction")

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Within the classified investors auction, no minimum response rate has been set. However, it should be emphasized that if orders are received exceeding NIS 100,000,000 par value of Bonds (Series 16) and/or exceeding NIS 100,000,000 par value of Bonds (Series 17), the Company's response will not be less than NIS 100,000,000 in each series, respectively. If orders are received for less than NIS 100,000,000 par value of Bonds (Series 16) and/or less than NIS 100,000,000 par value of Bonds (Series 17), the Company undertakes to respond to all orders from the relevant series or alternatively to cancel the classified investors auction for the relevant series.

For the avoidance of doubt, it is clarified that as of the date of this immediate report, there is no certainty that the aforementioned offering will indeed take place. It is emphasized that the mere execution of a classified investors auction under the above conditions, as well as the execution of the offering, its scope, timing, and other terms as will be detailed in the shelf offering report to be published by the Company (if and to the extent it is published), have not yet been determined, and are subject, among other things, to the Company's discretion and the decision of the Company's Board of Directors, and are conditional, inter alia, on the existence of suitable market conditions and the receipt of all required approvals by law, including the approval of the competent organs in the Company and the approval of the stock exchange for the listing of the bonds for trading, which as of the date of this report have not yet been received.

The above does not constitute an indication or create any obligation on the part of the Company to carry out the issuance of the securities, all or part thereof.

This report does not constitute an offer to the public to purchase the Company's securities and no one should purchase or undertake to purchase the Company's securities based on this report.

Respectfully,

Alony – Hetz Properties and Investments Ltd.

• By: Mr. Nathan Hetz, CEO and Director
• and Oren Frenkel, CFO

FOOTNOTE:

¹⁰¹ As defined in the Securities Law, 1968, and in the Securities Regulations (Manner of Offering Securities to the Public), 2007 (hereinafter: "Offering Manner Regulations").

¹⁰² As defined in the Offering Manner Regulations.