Today's Israeli government bond issues in Europe are projected to reach €2.5 billion, informed sources reported. Their assessment is based on the great interest in the issue expressed by investment institutions in Europe during the road show conducted in recent days and during the initial stages of the issue.
The Israeli government is offering both 10 and 20-year fixed interest bonds. The state originally intended to raise €1-2 billion. The issue, which is being conducted in London in the presence of outgoing Ministry of Finance Accountant General Michal Abadi-Boiangiu, is due to end today with a yield of less than 2.83% - the same interest offered for the state's last euro bond series in 2014. This series, which matures in 2024, is currently being traded at a spread of 55 base points above the euro swap interest for the same period. The bids submitted in today's issue were around 87 base points above the euro swap rate for the 10-year bond series and 125 base points above the euro swap rate for the 20-year series.
Sources inform "Globes" that the issue was greatly oversubscribed. At the beginning of the week, Ministry of Finance Accountant General department specialists, headed by senior Deputy Accountant General Yali Rothenberg, who heads the debt management unit, traveled to Europe to assess whether the current conditions in Europe were conducive to a sale of Israel government bonds. As part of the road show, Rothenberg and his staff held meetings in London, Munich, Frankfurt, and Paris, where they were scheduled to meet with major European investors. They also held talks on the telephone, including conference calls, with other key targets in European Union member countries.
The volume of Israel's current marketable debt in euros is €3.5 billion, and its total foreign currency debt is $27 billion, accounting for 13% of the government's overall debt.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 11, 2017
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