Chicago, Jan. 11 – The State of Israel sold $2 billion of 4˝% senior green bonds with a 10-year tenor (A1/AA-/A+) on Tuesday, according to a market source and final terms in an FWP filing with the Securities and Exchange Commission.
The 4˝% notes priced at 99.419 to yield 4.573%, or at Treasuries plus 95 basis points. The bonds were initially talked in the 130 bps area.
Barclays Bank plc, BNP Paribas, BofA Securities, Inc. and Citigroup Global Markets Inc. (billing and delivery) are the joint bookrunners.
Final book size was more than $12 billion.
Israel intends to allocate an amount equal to the net proceeds from the sale of the bonds to finance or refinance projects that may qualify as eligible green expenditures under its green bond framework in one or more of the following categories: clean transportation, renewable energy, energy efficiency, green buildings, sustainable water and wastewater management, pollution prevention and control and circular economy, environmentally sustainable management of living natural resources and land use and climate change adaptation.
BNP Paribas and Citigroup are acting as green structuring banks.
The SEC-registered bonds are expected to be listed on the Luxembourg Stock Exchange.
| Issuer: | State of Israel
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| Amount: | $2 billion
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| Issue: | Senior green bonds
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| Maturity: | Jan. 17, 2033
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| Bookrunners: | Barclays Bank plc, BNP Paribas, BofA Securities, Inc. and Citigroup Global Markets Inc. (billing and delivery)
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| Trustee: | Citibank, NA as fiscal agent
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| Counsel to issuer: | White & Case LLP and in-house
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP and Meitar Law Offices
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| Coupon: | 4˝%
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| Price: | 99.419
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| Yield: | 4.573%
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| Spread: | Treasuries plus 95 bps
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| Call features: | Non-callable
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| Trade date: | Jan. 10
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| Settlement date: | Jan. 17
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| Ratings: | Moody’s: A1
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| S&P: AA-
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| Fitch: A+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 130 bps area
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| Cusip: | 46514BRA7
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