The Ministry of Finance in Israel is preparing to issue billions of dollars in bonds to international investors, to fill the large deficit in its budget, according to Yedioth Ahronoth newspaper.
The move, led by Accountant General Yahli Rotenberg, comes as Israel seeks to take advantage of favorable market conditions in the wake of recent geopolitical shifts. He recently visited London to communicate with global investors and promote the upcoming issuance.
According to the newspaper, this is scheduled to be the first major international bond sale to Israel in 10 months, after a record offering of $8 billion on March 5, 2024, with the aim of financing war needs.
International bond offerings have historically been an important mechanism for Israel to finance the deficit, especially during crises such as the (Covid-19) pandemic and periods of war, and these issues help relieve pressure on the domestic market and stabilize revenues, even in light of large government debts.
Anticipating developments
But analysts warn that renewed tensions along the northern border or potential escalation with Iran may delay the issuance, and financial experts suggested that Israel would move quickly to anticipate any developments that might lead to an increase in interest on its bonds.
According to the newspaper, this new issuance is expected to target billions of dollars or euros, and will test the ability of the Israeli financial strategy to withstand the evolving global and regional dynamics.
