Israel raised $6 billion in an international bond sale overnight, seeking to help finance war-related expenses and the rehabilitation of its military, the Finance Ministry said Wednesday. The bonds were issued in maturities of five, 10 and 30 years, with yields set at 0.9%, 1% and 1.25%, respectively, above comparable U.S. Treasury bonds.
The weighted average spread was 1.02%, an improvement of about 34% compared with Israel’s dollar-denominated bond issuance in 2024, when the weighted spread stood at about 1.54%, according to the ministry. The issuance drew demand of $36 billion, the Finance Ministry said. The deal was underwritten by Bank of America, Citi, Deutsche Bank, Goldman Sachs and JP Morgan.
The ministry said the Accountant General’s Office, headed by Yali Rothenberg, recently held a series of meetings with strategic investors in Europe, Asia and the United States, including pension funds, insurance companies and hedge funds. Officials said investor response was strong and reflected significant interest in the offering. The selected underwriters are among the world’s leading investment banks.
About a year ago, the Finance Ministry carried out a similar issuance of $5 billion in two tranches with five- and 10-year maturities to help finance a large budget deficit created by the war. Demand for that offering exceeded $23 billion, about 4.6 times the amount ultimately raised.
Accountant General Yali RothenbergPhoto: Noam MoskovichFinance Minister Bezalel Smotrich said the successful fundraising effort, which attracted high demand from institutional investors worldwide, reflected the strength of Israel’s economy and what he described as responsible economic management that has earned market confidence.
Rothenberg said the results signaled a return to prewar spread levels and demonstrated strong investor confidence in Israel’s economy. He said the size of the issuance supports Israel’s financing needs for 2026 and provides a significant boost to the domestic market, adding that the outcome reflects the resilience of the Israeli economy during a challenging period.