Last night the Ministry of Finance accountant general Yali Rothenberg completed an international offering in London. In the offering the Israeli government raised $5 billion in two series of bonds over five and ten years. The issue margins were set at 120 and 135 basis points respectively above the margins on US government bonds for similar repayment periods.
Demand for the offering totalled more than $23 billion, 4.6 times the amount of bonds being issued.
In the previous international offering by Israel in March 2024, at the peak of the war, an $8 billion bond was raised for various periods of time with margins of 135, 145 and 175 basis points above the margins on US government bonds for similar repayment periods.
Those participating in the offering included large institutional investors such as pension funds, insurance companies, hedge funds, financial investors and institutions holding long-term State of Israel bonds. 300 different investors participated in the offering from more than 30 countries.
The offering's underwriters were Goldman Sachs, Deutsche Bank, Citi Bank, Bank of America and JP Morgan.
Rothenberg said, "This is an important public offering that indicates the financial stability of the State of Israel and the high confidence of global investors in the Israeli economy, even during a period of global, security and local challenges. The spreads in the offering reflect the significant decrease in the State of Israel's risk premium and stabilizes it."
Published by Globes, Israel business news - en.globes.co.il - on February 12, 2025.
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