Strong Demand in NY For Israeli Bond Offering
Written by: Aaron Katsman | March 18, 2009
After initially trying to raise $500 million in a note offering, the Israeli Ministry of Finance is overjoyed at the fact that they are going to raise almost $8 billion. Giddy up!
According to Globes: “Capital market sources tell “Globes” that there is very strong demand for the Ministry of Finance’s 10 year dollar-denominated notes offering. Sources say demand surpassed $12 billion, and the issue was closed to new offers. Earlier reports had demand rising past $6 billion to reach $8 billion. The Ministry of Finance had planned to offer $500 million worth of notes today in New York. In light of the strong demand, market expectations are for Israel to sell $1.5 billion of the note.”
It appears that notes will price at a yield of 2.875% above the yield to maturity on 10 year US Treasury Notes. T-notes with that maturity closed yesterday at a yield of 3%, so that Israel’s notes will yield 5.875% per year.
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