Israel sells billion bond as regional tensions abate

Israel has taken orders of $20 billion for its first Eurobond of the year, despite the deadly strike on an Iranian general that threatened to push simmering Middle Eastern tensions to boiling point in early January.

Just days after a deadly airstrike on Iranian general Qassem Soleimani shook the markets, Israel sold a $3 billion Eurobond to investors who say that, despite early fears of an imminent escalation, regional flare-ups are just an everyday part of investing in the region.

Israel, rated A1/AA-/A+, launched a $1 billion 10-year bond at 68 basis points over Treasuries and a $2 billion 15-year bond at 115bp over on January 8 with orders for the deal topping $20 billion, according to a lead manager.

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