STATE OF ISRAEL
MINISTRY OF FINANCE
Chief Economist - Research, State Revenue and International Affairs Department
January 22, 2014
An Accomplishment for the Ministry of Finance and an International Vote
of Confidence in the Israeli Economy:
The Accountant General's Department today finalized a 10 year
bond issue abroad totaling 1.5 billion Euros
This is the first bond issue in Euros since 2010
The bond issue was implemented with the lowest interest rates ever for an issue in
Euros.
The Ministry of Finance Accountant General Department completed today a successful issue
of Israeli government Euro bonds in London. €1.5 billion worth of bonds were issued for a
period of 10 years, with a yield of 2.932%.
The issue was managed by the Accountant General, Michal Abadi - Boiangiu and Senior
Deputy Accountant General Yali Rothenberg, together with the Managing Director of
Government Debt Gil Cohen and the Ministry of Finance representative in New York Sigalit
Sayag, resulting in the successful closure of the transaction which was performed through
underwriters at Barclays, Goldman Sachs and City Bank.
The issue took place after an extensive round of meetings in Europe this week between
foreign investors and the Government Debt Management Department.
A high demand of about 5.7 times the original planned issue amount (the original scope of the
planned issue was €1 billion, however, it was decided to expand this amount to €1.5 billion
due to the demand) was received from 300 different investors located in some 30 countries,
including the United Kingdom , Germany, France, Switzerland, Hong Kong and others. Many
of the investors that had previously met with the representatives of the unit participated in the
offering, which facilitated the impressive demand for the bond issue.
In accordance with the Government Debt Management Department work program, this is the
fifth Euro bond issue of the State of Israel and it was characterized by the lowest funding cost
ever paid by the State of Israel in a Euro bond issue and by historically low margins. The
issue helps to create a foreign currency benchmark in global markets and assists Israeli
companies with financing in Euros. The last foreign currency (Dollar) issue took place in
January 2013.
The Minister of Finance, Yair Lapid: "The successful issue indicates that international
financial markets are expressing great confidence in the Israeli economy. The large number of
financial institutions requesting to participate in the issue suggests that there is no substitute
for responsible management and fiscal discipline."
- Page 1 1 Kaplan St. Jerusalem 9103002, P.O. Box 3100, Tel: 02-5317200, Fax: 02-5695349
http://www.financeisrael.mof.gov.il
Government Portal: www.gov.il
The Accountant General, Michal Abadi Boiangiu, added that "the issue of bonds in Euros for
the first time in four years expresses the confidence of foreign investors in general, and in
Europe in particular, in the medium and long term repayment capability of the State of Israel.
It also points to the country’s various financing options in different markets and currencies."
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