Israel sells $1.5 bln of 10-year bonds
NEW YORK, March 19 (Reuters) - Israel sold $1.5 billion worth of 10-year bonds at 99.498 on Thursday after a one-day delay in order to account for a massive drop in U.S. Treasury yields after the Federal Reserve said it would purchase long-term Treasuries.
The bond brought a yield of 5.19 percent and a coupon of 5.125 percent, market sources said, later confirmed by lead managers. The spread over U.S. Treasuries was 262.5 basis, at the tighter end of the revised guidance range given on Wednesday before the delay. Initial guidance had been reported at 287.5 basis points.
The Israeli Finance Ministry told Reuters the offering is the largest ever sold by Israel based upon its own credit-worthiness in the international markets.
Bids were about $12 billion, 60 percent from foreigners and 40 percent from Israeli investors, the finance ministry said.
Lead managers of the deal are Citigroup, Deutsche Bank and Goldman Sachs. (Reporting by Daniel Bases; Editing by Leslie Adler)
