For over seven decades, Israel Bonds has played a central role in connecting individuals, institutions, and communities to the State of Israel through the sale of Israel bonds. What began as a historic initiative in 1951 has evolved into a global network that offers investors a direct, meaningful way to participate in Israel’s ongoing story.
Israel bonds, the investment instruments themselves, are more than traditional debt securities. They are long-standing obligations of the State of Israel, backed by its full faith and credit, and shaped by a unique relationship between Israel and a worldwide investor community that has consistently supported the Jewish homeland.
Whether you’re discovering Israel bonds for the first time or looking to deepen your understanding, this overview explains what they are, who issues them, and how they fit into Israel’s broader financing strategy.
What Israel Bonds Are
Israel bonds are debt securities issued directly by the State of Israel. When you purchase an Israel bond, you are lending money to Israel for a defined term. In return, the State of Israel commits to paying interest according to the bond’s terms and returning your principal at maturity.
The terms of each offering include interest rate, payment schedule, purchase increments, and maturity period. All details appear in the official prospectus. Israel bonds are designed to be held to maturity and do not have a secondary market.
Who Issues and Markets Israel Bonds
Israel bonds are issued by the State of Israel.
In the United States, they are marketed and underwritten by Development Corporation for Israel (DCI). DCI is a FINRA-member broker dealer authorized by the State of Israel to offer Israel bonds to individuals and institutions.
Affiliated organizations that sell Israel bonds in other regions are:
- Canada-Israel Securities, Limited serves Canada
- Development Company for Israel (Europe) GmbH serves the European Union
- Development Company for Israel (International) Limited serves markets outside the United States, the European Union, and Canada
These organizations ensure that Israel bonds are accessible to investors in many regions.
Why Israel Issues Bonds
Israel issues bonds as part of its general financing strategy. These are general obligation bonds, meaning the State of Israel may use the proceeds for any purposes determined by the government.
A Story That Began in 1951
In the United States, Israel bonds have been marketed since 1951, when DCI began underwriting the program. Since then, investors worldwide have purchased more than $57 billion in Israel Bonds. This reflects a long-standing relationship between Israel and a broad, diverse investor base.
Payment History and Ratings
A Consistent Record of Payment
Since DCI began underwriting Israel bonds in 1951, the State of Israel has never missed a payment of principal or interest on these bonds. Past payment history does not guarantee future performance.
Credit Ratings
The State of Israel is evaluated by major global rating agencies including Moody’s, S&P Global Ratings, and Fitch. These agencies conduct independent analyses of Israel’s creditworthiness, and ratings may change at any time. Investors should consult the agencies directly for the most current rating information. Please note that the Israel bonds sold by Development Corporation for Israel (DCI) are not rated by any of these rating agencies.
Bond Structures and Terms
Over the decades, Israel has issued a variety of bond structures, including savings bonds, fixed rate bonds and in the past, floating rate bonds. The return on any Israel bond depends entirely on its specific terms including maturity, interest rate, payment features, and purchase requirements. All terms appear in the prospectus.
Liquidity
Israel bonds do not have a secondary market and must be held to maturity. Investors should review individual bond terms and risk factors in the prospectus before purchasing.
Final Notes
Israel Bonds and the Israel bonds program reflect a remarkable relationship between the State of Israel and investors around the world. Built on decades of transparency, consistent payments, and global participation, Israel bonds continue to play an important role in Israel’s financing framework and offer investors a meaningful way to engage with Israel’s strong and innovative economy.
