The Israeli government is selling bonds to the tune of $8 billion, as part of the first sale of this kind in the international markets since the outbreak of the October 7 war with Hamas. This is the largest issuance of dollar bonds in the history of the country.
The underwriters in the offering are the Bank of America, Merrill Lynch, Bank BNP Paribas, Deutsche Bank, and Goldman Sachs.
The three-stage tender for the sale of dollar bonds for periods of five, 10, and 30 years, attracted demands of at least $38 billion from investors.
Israel Hayom cited Accountant General Yali Rotenberg, who said “The success of the IPO is an unprecedented expression of confidence by the world’s largest international investors in the Israeli economy, a trust that has been built up over many years.”
Finance Minister Bezalel Smotrich said this was “a sign of the strength of the Israeli economy and an expression of confidence of the investors from the international markets in the Israeli economy, in our economic policy, and our ability to win with God’s help and restore security and stability.”
Although the Israeli government has already sold dollar and euro bonds since the outbreak of the war as part of several private issues, the current issue is the first sale in the international public markets since October 7.
According to The Marker, citing sources familiar with the offering, in the current issue, the interest on the short-term bonds attracted a yield about 135 basis points higher than the corresponding US government bonds. This is compared to the early target of about 160 basis points above that of US bonds.
