Israel Discount Bank raises €500M in second Israeli covered-bond offering
What's the deal? Israel Discount BankDealroom has a profile for this one. Try Dealroom → has completed an inaugural €500 million covered-bond offering to international investors. The five-year issue priced at 3.875% and carried AA-/Aa3 ratings.
Why now? The deal is only the second international covered-bond issuance by an Israeli bank. It follows Bank LeumiDealroom has a profile for this one. Try Dealroom →'s €750 million debut in January 2026, which priced at 3.197% and drew about €4.6 billion in orders.
What's the endgame? Covered bonds are backed by mortgage assets, giving banks a route to international euro funding that can diversify sources and potentially lower costs versus unsecured debt. Discount's offering establishes it on that path.
Who's involved? HerzogDealroom has a profile for this one. Try Dealroom → advised Barclays Bank on the transaction. The team was led by partners Irit Roth, Ron Ben-Menachem, Roy Nachimzon, and Mohammad Mawasi, with associates Nathan Adler and Hillel Billauer, and Dr. Ehab Farah on tax matters.
The signal: Two deals in a year suggest Israeli banks are building a new channel to international euro funding backed by mortgages. Discount's issue follows Leumi's successful first move rather than breaking new ground — but it signals the route is becoming established.
Read more: herzoglaw.co.il
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