Broker operating for Israel raised over $5bn in United States since Oct. 7

Since the beginning of the Gaza war on Oct. 7, 2023, Israel is said to have raised a record amount valued at $5 billion through its broker Israel Bonds, based in the United States, reported Bloomberg on June 6.

The value of this amount is more than double what was collected by the organization during similar periods before the Hamas attack on Israel. "In addition to representing significant capital, these $5 billion embody a global vote of confidence in the Israeli economy," said Dani Naveh, president and CEO of Israel Bonds, to the economic media.

Affiliated with the Israeli Ministry of Finance and registered in the United States since 1951, Israel Bonds, also known as the Development Corporation for Israel (DCI), is an organization that sells debt securities, mainly in the United States, with proceeds used to support Israeli projects, notably in infrastructure, economic development, and defense. Bloomberg explains that these securities are sold with maturities currently ranging from one to 15 years and yields from 4.86 percent to 5.44 percent for five-year bonds, and that, unlike regular bonds, the debt securities sold by DCI cannot be traded or resold on the secondary market.

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According to Naveh's remarks, the main American investors were "local governments at the state level" in the United States, including "New York, Texas, Ohio and Illinois." The largest investor is "Palm Beach County," an administrative region in Florida, which holds "$700 million in Israeli sovereign bonds," explained the president and CEO of Israel Bonds. According to him, these investments are abundant and constant because investors "get a solid and steady return on investment and, at the same time, it's a great way for them to express their support." Last year, the local bond market accounted for 80 percent of all loans, with the rest coming from international markets and other private placements, according to Bloomberg's analysis.

Since Oct. 7, 2023, the Israeli economy has been put to the test, and Netanyahu's government had to borrow a record amount equivalent to $75.9 billion, according to figures collected by Bloomberg, in particular to finance its war effort in Gaza.