JERUSALEM (Reuters) - Israeli real estate firm Property & Buildingsaid on Sunday it signed a non-binding term sheet with a foreign bank to refinance its borrowing on the HSBC Tower building in New York in the amount of $400 million over 10 years.

Property & Building plans to forge a new financing deal by the end of June, it said in a statement.

The current financing on the Fifth Avenue building is about $240 million.

In April, the company said it was in talks with several foreign banks to refinance its loan on the HSBC Tower. It said at the time that a new agreement would generate cash flow of $100-$150 million.

Property & Building is a subsidiary of holding company IDB.

Its shares were up 1.1 percent at midday in Tel Aviv, while its bond prices were up 0.9 percent.

(Reporting by Steven Scheer)