London Stock Exchange announced today that Israel issued €2.25 billion of 10 & 20 year government bonds on its market, making the country the first non-European sovereign to issue a euro-denominated bond in 20 year tenor. Last time Israel issued euro-denominated debt was three years ago.
Details on the issuance indicate that the offer was more than four times oversubscribed, with the combined order books closing in excess of €9.5 billion, a proof of much investor demand.
The total €2.25 billion is divided by €1.5 billion in 10-year-debt at a coupon of 1.5 per cent and €750 million in 20-year debt at a coupon of 2.375 per cent.
In a ‘Brexit’ era, the news is very welcomed by the UK as it shows that London is still a leading global financial center for debt fundraising and the London Stock Exchange as a key player for Israel and its businesses.
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics at London Stock Exchange said: “Israel’s choice of London Stock Exchange for its largest ever Euro-denominated bond offering underlines the strength of business ties between our two countries and London’s status as a market open to the world. The success of the listing reinforces the exceptional investor interest in building exposure to Israel’s dynamic economy through debt, equity and exchange traded fund products. It builds on the fast growing community of Israeli companies on our markets, with listings in excess of $8 billion and reinforces London’s status as a leading global listing venue and a strong partner to Israel.”
A total of 28 Israeli businesses are listed on London Stock Exchange with a combined market capitalization of $8.36 billion. €2.3 billion in Israeli stocks was traded on LSE in 2016.