In a resounding testament to Israel's financial resilience and global economic standing, the Ministry of Finance's Accountant General, Yali Rothenberg, successfully executed an international bond offering in London, securing a substantial $5 billion in capital. This latest issuance underscores the unwavering confidence of international investors in the Israeli economy, even amidst complex global challenges.
Overwhelming Demand Highlights Investor Trust
The offering, structured in two series of bonds maturing in five and ten years, was met with an extraordinary demand of over $23 billion—an astounding 4.6 times the amount issued. The sheer scale of investor interest underscores Israel's robust creditworthiness and the trust placed in its economic policies.
International investors have started buying up Israel's bonds again, and those of Lebanon. Egypt has just managed its first dollar debt sale in four years. Trump's Gaza proposal may have thrown a curveball into the mix. https://t.co/f0srfqvoQs
— Clauda Tanios (@ClaudaTanios) February 10, 2025
The bonds were priced at highly competitive rates, with issue margins set at just 120 and 135 basis points above comparable U.S. government bonds. These figures mark a notable improvement in Israel’s risk premium, reflecting enhanced market confidence and the country’s fiscal discipline.
Comparing to the 2024 Offering Amidst Wartime Uncertainty
This latest success follows Israel’s previous international offering in March 2024, during the peak of the war, when the government raised an impressive $8 billion. At the time, bonds were issued with margins of 135, 145, and 175 basis points above U.S. Treasury rates, demonstrating that while investor trust remained high even during wartime, Israel's current offering is benefitting from significantly improved financial conditions and investor sentiment.
UPDATE 1-Israel sells $5 billion of bonds in international offering https://t.co/WCBq8XAK3m
— iNews24 (@iNews24) February 12, 2025
Global Institutional Backing from Over 30 Countries
Participation in this offering was widespread, drawing investments from 300 different institutional investors across more than 30 countries. Among those backing the issuance were major pension funds, insurance companies, hedge funds, and other financial institutions that have consistently supported Israel’s long-term economic growth. Such widespread participation underscores the broad appeal of Israeli bonds as a stable and lucrative investment option.
Top-Tier Underwriters Reinforce Market Confidence
The offering was managed by some of the world’s most prestigious financial institutions, including Goldman Sachs, Deutsche Bank, Citi Bank, Bank of America, and JP Morgan. Their involvement not only lent additional credibility to the issuance but also ensured strong placement and strategic execution in global capital markets.
Official Remarks on the Offering’s Success
Accountant General Yali Rothenberg hailed the offering as a milestone achievement, stating:
"This is an important public offering that signals 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 pricing of this offering reflects the significant decrease in Israel’s risk premium and serves to further stabilize the nation’s economic standing."
Israel raises $5b international bond - Globes https://t.co/7wA33oolQT
— Chai5..🎗אֶהְיֶה אֲשֶׁר אֶהְיֶה ... I am that I am (@sadcjp) February 12, 2025
A Testament to Israel’s Economic Strength
This latest bond issuance is more than just a financial transaction; it is a powerful indicator of Israel’s unwavering economic resilience and the global investment community’s faith in its long-term stability. At a time when global markets are navigating uncertainty, Israel has once again demonstrated its ability to attract capital from the world’s most sophisticated investors, reinforcing its position as a reliable and financially secure nation on the global stage.
