Israel raises $2 billion in its first-ever issuance of 10-year green bonds
State joins sovereign green bond club in raising funds to help attain climate-related national goals
Israel has completed its first sale of dollar-denominated 10-year green bonds, raising a total of $2 billion through an international debt offering as the government sets out to meet its goal of a zero-emissions economy by 2050.
Israel is the 24th country around the world to sell green bonds, which are geared to fund key environmental objectives such as those set out in the national action plan on climate change to cut carbon gas emissions. The government seeks to cut global warming emissions by at least 27% by 2030, compared with a 2015 benchmark, and to reach net-zero by 2050.
The Finance Ministry said it sold $2 billion of the green bonds at 95 basis points above the benchmark yield on similar-term US government bonds. Demand amounted to about $12 billion, or six times the amount issued, as more than 200 investors in 35 countries, including the US, the UK, Germany, and the United Arab Emirates, participated in the international bond offering.
Barclays, BNP Paribas, BofA Securities and Citi acted as the underwriters of the offering. The offering drew “high demand” from Asian institutional investors such as in Japan and Korea, the Finance Ministry said.
“The broad participation of the world’s largest institutional investors in the sale is a sign of great confidence that investors have in the State of Israel and in the strength of the Israeli economy and requires us to continue a responsible policy that will move the Israeli economy forward,” said Finance Minister Bezalel Smotrich. “We will continue to work to advance the Israeli economy and maintain ties with international investors.”
