Yuval Steinitz 311.
(photo credit: Ariel Jerozolimski [file[)
The Accountant General’s Office implemented a $400 million, one-year, private
offering to one of the world’s largest Asian government funds on
The offering was made as part of the Government’s European
Medium Term Note shelf prospectus plan. Goldman Sachs, which is currently
serving as the head market maker for Israel government bonds, was the
“The current offering was implemented at the request of the
Asian investor, who is considered a strategic global investor in capital
markets. This will be its first investment in Israeli government bonds,” the
Finance Ministry said.
China's sovereign investment fund, CIC, and
Singapore's sovereign investment fund, Temasek, are among Asia's leading
The fund raising was implemented at a one-year dollar
interest rate of 1.599 percent.
In shekel terms, this is very low for
fund raising costs. The government's financing cost in shekels is lower than the
short term securities' yield for the same period by about 0.3%.
Minister Yuval Steinitz said his ministry, “views the penetration of new markets
as extremely important, and in particular the Asian market that is developing so
quickly. Israel's exposure to Asian financial markets opens the door for Israeli
companies interested in conducting commercial activity with Asian countries. The
fact that these types of investors chose to do this deal with the State of
Israel is another vote of confidence in the strength of Israel's economy.”