Israel Issues Largest Ever Euro Bond Offering On The London Stock Exchange


Wednesday, January 18, 2017 5.43PM / News



         Israel’s €2.25 billion 10 & 20 year government bonds start trading on London Stock Exchange today

         First non-European sovereign to issue a euro-denominated bond in 20 year tenor

         Euro-denominated debt listing is the first for Israel in three years

         Investor demand surges for the offer, reaching more than €9.5 billion and four times oversubscribed

         Demonstrates vote of confidence in Israel’s economy

         Reinforces London’s status as a leading global financial centre

The London Stock Exchange today welcomes the listing of Israel’s largest ever Euro denominated bond offering. The €2.25 billion issue in 10 and 20 year government bonds marks the first time in three years Israel has issued Euro denominated debt. The offer secured exceptional investor demand and was more than four times oversubscribed, with the combined order books closing in excess of €9.5 billion.

Israel sold €1.5 billion in 10-year-debt, paying a coupon of 1.5 per cent and €750 million in 20-year debt, paying a coupon of 2.375 per cent to help lengthen the country’s debt profile. The 10-year bond matures in 2027 and the 20 year bond matures in 2037.

Today’s milestone bond listing for Israel follows several high profile bond issuances by supranational institutions, municipals and private companies on London Stock Exchange in 2016, cementing London Stock Exchange’s position as a leading global venue for debt fundraising. Together, with the active and fast-growing community of Israeli companies on its markets and secondary market trading activity for Israeli stocks in London, London Stock Exchange is ideally suited to support Israel’s growth ambitions.

         28 Israeli businesses are listed on London Stock Exchange across the Main Market and AIM, with a combined market capitalisation of $8.36 billion

         In 2016 €2.3 billion in Israeli stocks was traded on London Stock Exchange and €615 million on Turquoise, the European multilateral trading facility majority owned by LSEG in partnership with the user community

         In 2015, the Israeli Securities Authority granted authorisation for London Stock Exchange plc and Turquoise to admit Israeli member firms, subject to certain limitations. There is one Israeli member firm on London Stock Exchange

         MTS, LSEG’s electronic fixed income trading platform, provides the designated wholesale electronic trading system for Israeli Primary Dealers

         The Tel Aviv Stock Exchange is MTS’ technical partner in Israel for connectivity infrastructure and provides clearing to MTS Israel with the Tel Aviv Clearing House

         LSEG’s commitment to Israel was reinforced in September 2016 when it organised its first Capital Markets Conference in Tel Aviv & signed an MoU with Bank Hapoalim to support the development of ELITE in Israel

         Five Israeli companies are already part of ELITE, London Stock Exchange Group’s successful international business support programme

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.”

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