Bond Financing
THE ISRAEL BONDS FINANCING PROGRAM
SIGNIFICANT FUNDS FOR ISRAEL. RELATIVELY LOW COST FOR PARTICIPANTS.
FINANCE A 2-YEAR ISRAEL BOND:
- Investments available from $100,000 to $2 million
- Increments: $25,000
- Maturity: Two years
HOW IT WORKS:
- Apply to a participating bank for a loan in the amount of the desired denomination
- Upon approval, your Israel bond is assigned to the bank as collateral
- The State of Israel sends the interest directly to the bank
- You pay the difference between the interest paid by Israel and the amount of interest due on the loan, usually a fixed amount for the duration of the loan
- When the bond reaches maturity, the proceeds are paid to the bank and your payment obligations are complete
FOR EXAMPLE:
- Finance a bond in your specified amount
- Interest paid by Israel is 1.10%*
- Customer pays difference between 1.10% and what bank is charging for each specified amount
- Personal annual cost for two years:*
- $100,000 bond / x 2 years = $2,840
- $250,000 bond / x 2 years = 6,100
- $500,000 bond / x 2 years = 10,200
- $1 million bond / x 2 years = 10,400
TERMS & CONDITIONS:
- Each participating bank sets the specific terms for the loan. You will be asked to submit a current personal financial statement, tax returns for the last two years and additional information as requested. The bank will ask you to deposit and maintain, in an interest-bearing account, an amount equal to the sum to be paid over the course of the loan. Other conditions, such as an additional fixed amount, may also apply. Loan approval is at the sole discretion of the bank.
- Interest paid on the loan may be tax deductible, subject to specific limits provided by law. Consult your tax advisor to determine applicable regulations.
AUTHORIZED INSTITUTIONS:
- Click here for a list of Authorized Institutions
FOR FURTHER INFORMATION:
- Click here for the Bond Financing Information Form
*Numbers are based on rates offered by the State of Israel and a participating bank as of March 1, 2021 and are for illustrative purposes only. Terms of the financing program, interest on the Fixed Rate Jubilee Financing Bond and rates charged by participating banks are subject to change.
This is not an offering which can only be made by prospectus. Read the prospectus carefully before investing to fully evaluate the risks associated with investing in Israel bonds. Issues subject to availability. Approval of the loan and terms of the loan are within the discretion of the bank and neither the State of Israel nor DCI make the decision as to whether the bank will grant a loan and on what terms a loan will be made. Member FINRA