Luxembourg's Decision to Approve Israeli Bonds
The CSSF's refusal to grant approval for the new period has stopped Israel from borrowing and raising funds from EU markets through this method.
With the Luxembourg financial market regulatory authority, the CSSF, declining to grant new approval for Israeli bonds whose approval period has expired, Israel's process of borrowing from EU markets has come to an end.
Expiration of Bond Approval Period
The validity period of the prospectus, which was approved last year by Luxembourg's financial markets regulatory authority, the CSSF, and allowed the sale of Israeli bonds in EU countries, expired on August 31.
Cessation of Raising Funds from EU Markets
With the CSSF's decision not to grant approval for the new period, Israel's raising of financial resources from investors in EU markets through these bonds has completely come to an end.
Israel's Search for Alternatives
In order for Israel to continue its bond sales within the EU, it needs to find and persuade another European Union member state to approve the prospectus.
Israel Bonds and Financing Purpose
Bonds with various maturities created by Israel to borrow from overseas investors are called Israel Bonds, and the resources raised are used for general financing needs.
Annual Revenue and Maturity Structure
While bonds with various maturities ranging from 1 to 15 years are offered for sale under the program, data shows that these notes issued to the EU generate approximately $2.5 billion in annual revenue.
Ireland's Previous Decision
Before Luxembourg, the regulatory center for Israeli bonds in the EU was Ireland, but Ireland had also refused to renew the approval due to pressure.