Israel Returns to Global Bond Market with $5 Billion Issuance
Tel Aviv, Israel - After a hiatus of over 16 months due to war, Israel has re-entered the global bond market, raising $5 billion to bolster its financial position.
In a two-part transaction, Israel sold $2.5 billion in five-year notes and another $2.5 billion in 10-year notes. The bonds were priced with spreads of 120 basis points and 135 basis points over US Treasuries, respectively.
The issuance follows investor meetings in the UK and US in preparation for the bond sale. Israel typically issues dollar bonds annually or biannually, with its last offering being an $8 billion deal in March 2024.
The country's fiscal deficit has widened significantly since the outbreak of conflict with Iran-backed militias in October 2023. However, ceasefires with Hezbollah and Hamas have recently eased the economic impact.
Israel's budget deficit has narrowed to 5.8% of GDP in January from 6.9% in December. Bond spreads and credit-default swaps have also declined.
Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs, and JPMorgan Chase arranged the bond sale.