'Israel' sells first dollar bonds to fund genocide

By Al Mayadeen English
Source: Bloomberg
5 Mar 2024 17:38
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The projected size of the bond issuance falls in the range of $4 billion to $6 billion, making it one of "Israel's" largest bond issuance to date.

A man is seen at the "Tel Aviv" Stock Exchange in "Tel Aviv", Palestine, 2011 (Jack Guez/AFP)

"Israel" is gearing up to sell its first international bonds in efforts to fund its genocidal campaign in Gaza and its effects on the internal market.

Sources informed Bloomberg that the maturity period of the dollar bonds will vary between 5, 10, and 30 years. Details about yield and size are expected to be disclosed later in the day.

Since the commencement of the war, "Israel" has already issued several privately placed bonds in various currencies, including the dollar, the euro, and the yen. But the regime had refrained from entering the public market until now.

According to Bloomberg, the projected size of the bond issuance falls in the range of $4 billion to $6 billion, making it one of "Israel's" largest bond issuance to date.

Initial indications suggest that the regime will offer the shortest-term notes at a spread guidance of approximately 160 basis points over US Treasuries, potentially yielding around 5.8%. Meanwhile, guidance stands at around 175 basis points for the 10-year tranche and 205 basis points for the 30-year debt.

The genocide in Gaza has had a significant toll on the Israeli economy. The drafting of 300,000 reservists impacted several crucial economic sectors, including the tech industry, commerce, and tourism, among others. Despite this, the shekel has retained relatively strong levels of stability.

While "Israel's" average dollar yields have moderated to around 5.7% from a peak of 6.5%, indicating a certain confidence among investors in the economy's resilience, concerns persist. "Israel's" credit-default swaps, which measure the cost of safeguarding against default, remain elevated.

"Israel" is expected to conduct a near-record bond issuance this year. While a significant portion of this issuance will likely occur in the shekel market, foreign borrowing is anticipated to surpass $10 billion.

Al Mayadeen analysts suggest that the delay in the US providing financial assistance to "Israel" could be a factor in this decision. With substantial support from US citizens, "Israel" may become less reliant on direct financial aid from the US government to sustain its genocide.

However, it's crucial to note that any investment in Israeli bonds could be seen as contributing to the war on Gaza. Al Mayadeen analysts argue that purchasing these bonds could make one complicit in the Gaza genocide.