The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Talking up Tel Aviv

Israel is awash with companies - many in the high-tech sector - eager to make equity and debt issues. Not surprisingly, foreign banks are beginning to establish local bases. The snag for the local capital market is that much of the listing is being done abroad, particularly on Nasdaq. Nick Kochan reports on efforts to bring some of it home.

Despite political and diplomatic uncertainties and a volatile economy Israel appears to be selling its investment story to international capital markets. "There is a lot more banking activity in all directions," says Ron Lubash, Lehman Brothers managing director for Israel. "The country has opened up. You see a whole slew of new companies and new issuers." Lehman predicts at least six new debt issues in the coming year. "There is a general acceptance of Israel shifting to the debt market," says Lubash. "Now the door is open. Israel has more exciting growth prospects than some other as, and a pretty good debt-repayment track record. Both country and companies have little default history."

Israel may be a tempting market for the banks, many of which have stayed out because of the threat of an Arab boycott, but some of the story has to be taken on trust. Economists point to near double-digit inflation, comparatively slow growth at 3.5%, and a budget deficit of 3.7%. One economist admits: "Israel is a tough sell at the moment."

For the moment, though, banks are talking up Israel, especially the opportunities surfacing in the equity and debt markets. Many have set up representative offices in the main commercial centre, Tel Aviv.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree