Israel successfully issued $5 billion in government bonds in international markets overnight (Tuesday-Wednesday), with investor demand exceeding expectations by a factor of 4.6.
Finance Minister Bezalel Smotrich hailed the achievement, stating that the overwhelming investor interest reflects global confidence in Israel’s economic strength, even amid security and financial challenges. “The remarkable success of this issuance is further proof of Israel’s economic resilience and the confidence that global investors have in our economy and the way we manage it,” Smotrich said.
Israel Maintains Its Strong Market Position
“Even during the challenges of war, Israel continues to maintain its status as an attractive investment destination, with responsible financial management ensuring stability and growth. The Ministry of Finance, together with the Accountant General’s Office, will continue to act decisively to safeguard Israel’s economic resilience and maximize financing opportunities for the benefit of its citizens,” stated Finance Minister Bezalel Smotrich.
In parallel, Israel’s Financial Stability Report for the second half of 2024, published yesterday by the Bank of Israel, highlights the strong resilience of the financial system, alongside a decline in risk levels within the credit market.
According to the report’s data, there has been a decrease in the risk premium and debt financing costs, alongside an increase in local stock market indices in the last quarter. Additionally, the credit market continues to demonstrate stability, with low delinquency rates on loan repayments and a decline in banks’ expenditures on credit losses. As a result, the risk level in the credit channel and asset prices has been downgraded from high risk to medium-high risk—the lowest level recorded since 2021.
