Bloomberg News

Israel Meets U.S. Bond Investors in ‘Non-Deal’ Debt Roadshow

January 08, 2013

Israeli Finance Ministry officials are meeting bond investors in the U.S. to gauge appetite for the country’s debt amid central bank calls to lower the budget deficit.

“Non-deal road shows are taking place to enable access to markets,” the ministry said in an e-mailed answer to questions from Bloomberg News. The accountant general’s office is studying a “foreign issuance as part of its yearly work plan,” the ministry said.

Globes reported in December that Israel is seeking to raise as much as $1.5 billion in foreign bonds in order to diversify funding sources. Israel is rated A1 at Moody’s Investors Service, the fifth highest investment grade. The cost of insuring Israel’s debt against default for five years dropped 63 basis points, or 0.63 percentage point, last year to 135, according to data compiled by Bloomberg.

Bank of Israel Governor Stanley Fischer has been calling on the government to rein in the budget deficit, which he said will reach about 4.2 percent of economic output in 2012, more than double the original plan. Prime Minister Benjamin Netanyahu called for early elections, scheduled for Jan. 22, citing opposition from partners in the coalition government to his budget plan.

Israeli economic growth slowed to 3.3 percent in 2012, the Central Bureau of Statistics said Dec. 31, compared with 4.6 percent in the previous year and 5 percent in 2010.

To contact the reporters on this story: David Wainer in Tel Aviv at dwainer3@bloomberg.net; Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net


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