16 Jan 2018

Globes: Treasury raises $2b in overseas bond issue

Demand for Israel’s new 10-year and 30-year bonds was high, and the interest rates were fixed at minimal margins over equivalent US government debt.

Accountant General Rony Hizkiyahu completed a $2 billion bond issue in London yesterday. Of this, $1 billion is for ten years and $1 billion for 30 years. Demand for the bonds was $18 billion.

The bonds were issued at a minimal margin over the interest rate on equivalent US government debt, indicating investors’ confidence in the Israeli economy.

The 10-year coupon is 3.25%, and the 30-year coupon is 4.125%. The bonds were issued at margins of 75 and 125 basis points over the interest rates on US government notes for similar periods.

The high demand for the bonds from major strategic investors supported the issue of the 10-year benchmark issue and the 30-year series, part of the Accountant General’s policy of lengthening Israel’s government.

300 different investors from 35 countries took part in the issue. Among other places, the investors were from the US, Britain, Germany and France, and there was also lively interest from Asian financial institutions.

Read more here: http://www.globes.co.il/en/article-treasury-raises-2b-in-overseas-bond-issue-1001219120