The bond issue is independent, and unrelated to the US loan guarantees.
The Ministry of Finance is raising $500 million in the US this week through an independent bond issue. The issue is unrelated to the US loan guarantees. Citigroup and UBS will be the lead underwriters. Ministry of Finance Accountant General Dr. Yaron Zalika announced today the government’s foreign currency capital raising plan for 2004, amounting to $5 billion. Of this sum, $2.5 billion will be raised with the US loan guarantees, $1.25 billion through State of Israel bonds (Israel Bonds), and the rest through independent Israeli government bond issues.
A high-ranking US economic delegation gave the go-ahead for the $2.5 billion in loan guarantees this year, after meeting this week with Minister of Finance Benjamin Netanyahu.
Zalika said that Israel’s credit rating on the eve of the issue was A minus from rating companies Standard & Poor’s and Fitch, and A2 (equivalent to an A rating) from Moody’s. Israel’s preceding dollar issue in June 2003 raised $750 million, at a yield of 153 basis points above the yield on US government bonds for a similar period.
Published by Globes [online] - www.globes.co.il - on February 25, 2004