Bank Leumi Issues $1 Billion in Tier 2 Capital Bonds at Record-Low Interest Spread

Bank Leumi finalized the issuance of $1 billion in contingent convertible (CoCo) bonds on Wednesday, securing the lowest interest spread ever recorded for an Israeli bank offering. The transaction marks the bank’s latest move to raise capital through international debt markets.

The bank structured the issuance as Tier 2 capital, a financial instrument that allows institutions to bolster their regulatory capital buffers. Investors responded to the offering with significant demand, which enabled the bank to price the bonds at a record-low spread relative to benchmark rates. This issuance follows a series of similar capital-raising activities by major Israeli financial institutions seeking to diversify their funding sources and strengthen their balance sheets. The bank will utilize the proceeds to support its ongoing operations and meet international regulatory capital requirements.

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Date: June 3, 2026

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GOAI