London Stock Exchange welcomes the Ministry of Finance of the State of Israel
London Stock Exchange welcomes the Ministry of Finance of the State of Israel to open trading in London today. Rony Hizkiyahu, Accountant General, Ministry of Finance along with Mark Garnier MP, Parliamentary Under Secretary of State at the Department for International Trade, His Excellency Mark Regev, Israeli Ambassador to the United Kingdom, Yali Rothenberg, Senior Deputy Accountant General, Ministry of Finance, and Gil Cohen, Head of Government Debt Management Unit, Ministry of Finance were in London to celebrate the landmark listing of Israel’s largest ever Euro denominated offering on London Stock Exchange.
In January 2017, the State of Israel raised EUR 2.25 Billion in a dual tranche transaction, EUR 1.5 billion in a 10-year benchmark tranche with a 1.5 per cent coupon, and EUR 0.75 billion in a 20-year tranche with a 2.375 per cent coupon. This marks Israel's largest ever single issuance and longest dated Euro transaction to date.
Interest in this issuance was exceptionally strong and high quality, which allowed the Ministry to complete the 20 year tranche. This longer dated tranche assisted the Ministry in achieving something that only a select group of highly rated Western European sovereigns have achieved, extending their yield curve to 20 years or longer.
This is Israel's 12th and 13th bonds to be listed on London Stock Exchange, of which 5 bonds are still currently active on the exchange.
Rony Hizkiyahu, Accountant General, Ministry of Finance:
"This successful issuance is a testament to the fundamental strength of the Israeli economy and to the faith that some of the biggest investors in the world put in Israel's credit. We are honored to have the privilege of opening London Stock Exchange, as this is an acknowledgment of the decade long relationship between the exchange and Israel and Israeli companies."
Yali Rothenberg, Senior Deputy Accountant General, Head of Financing, Debt and Credit Division, Ministry of Finance:
"The State of Israel has continued with its strategic goal of issuing once a year been continuously present in the global markets, thus ensuring we maintain a liquid curves in both the Dollar and Euro markets. This Euro issuance was a tremendous success for the State both in its final tenors, size and tight yields, and also in the fact that we saw strong interest from the biggest and highest quality names throughout London and Europe."
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, London Stock Exchange:
"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."