Considerable trust was conveyed by the international business community in the vitality of the Israeli government's economic program, as reflected in the results of its last offering, which managed to raise $750 million last week on the global market, at the lowest interest rate ever.
The 10-year bonds were sold at a yield of 4.73 percent, equal to 153 base points over US Government Bonds that are currently traded at a yield of 3.2 percent. In light of the demand of over four times the quantity, the Israeli accountant general decided to increase the quantity offered from $500 million to $750 million. This is the largest independent offering ever made by the State of Israel in international markets.
Approximately 200 entities and institutional investors from around the world, including insurance companies, investment banks, pension funds and more—from Australia, Europe, East Asia and the United States—sought to buy the Israel government bonds.
Accountant General Nir Gilad stated that this offering successfully obtained its strategic objectives, in terms of the broad geographic deployment, the different types of investors and the exposure of new investors to the State of Israel.
“It created a new point of reference to bonds of Israeli entities and concerns, raising the tradability and liquidity of Israeli bonds overseas, as well as attracting new foreign investors toward a long-term familiarity with the Israeli economy, while simultaneously expanding the relations with existing investors.”
The State of Israel has returned to the international capital markets, following a three-year absence from the US capital market. The underwriters of the offering were Lehman Brothers and Citigroup. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
