Bank Hapoalim said on Thursday, that it completed pricing for a $2 billion international private placement of bonds to institutional investors in the United States, the European Union, the United Kingdom and other markets.
The bank described the deal as the largest overseas bond issuance ever completed by an Israeli bank, citing record demand and broad participation.
The bank said investor orders totaled roughly $7 billion, and it accepted $2 billion. It added that the bonds are issued in two series with maturities of 3.5 and seven years, carrying annual coupons of 4.722% and 5.252%.
Pricing, spreads and where the bonds will trade
Bank Hapoalim said the pricing was around 0.35% above the yield on foreign-currency bonds issued by the State of Israel earlier in the week. The bonds are expected to be listed for trading on the Tel Aviv Stock Exchange’s TASE UP system, subject to exchange approval.
The issuance was led by international underwriters Citi, JPMorgan, Barclays, Morgan Stanley, Jefferies and Goldman Sachs, the bank said.
“The high demand in our issuance is further testimony to the bank’s leadership and the broad confidence it enjoys in financial markets worldwide,” CEO Yadin Antebi said in a statement. He said the fundraising would help the bank “continue to lead its significant growth trend in the coming years.”
Recent reporting by The Jerusalem Post has pointed to improved international investor appetite for Israeli issuers, including strong demand for Israel’s own dollar bond sale and renewed focus on major Israeli banks among global analysts.