Bank Leumi significantly expands debt issuance: to issue bonds and commercial paper totaling up to ₪4.345 billion

With the highest local credit rating, Bank Leumi is increasing its planned debt issuance by dozens of percentage points, for both the long and short term, to finance its operations.

Bank Leumi is expanding its capital raising plans and will issue debt in a total amount of up to ₪4.345 billion. Rating agency Midroog assigned the issuance the highest local rating, Aaa.il for the bonds and P-1.il for the commercial paper, with a stable outlook. The updated issuance volume represents an increase of approximately 71% in bond series and 84% in commercial paper compared to the original plan.

Bank Leumi le-Israel is significantly expanding its debt raising plans after receiving the highest local credit rating, Aaa.il, from Midroog. According to the published rating report, the bank plans to raise a total of up to ₪4.345 billion through two new bond series and one series of commercial paper. This move, coming with the highest quality stamp from the rating market, signals strong confidence in the bank's financial strength and grants it access to extensive capital under optimal conditions.

Substantial increase in long- and short-term issuance

As part of the long-term issuance, Leumi will issue two new bond series:
Series 189: In the amount of up to ₪2.32 billion.
Series 190: In the amount of up to ₪1.05 billion.

The aggregate amount of both series, up to ₪3.425 billion, represents an increase of approximately 71% compared to the original amount previously rated, which stood at ₪2 billion. Both series received an Aaa.il rating from Midroog with a "stable" rating outlook. This rating is the highest on Midroog's local rating scale, reflecting the rating agency's assessment that the bank has "the highest credit repayment capacity relative to other local issuers."

Additionally, the bank is expanding its short-term issuance. Leumi will issue commercial paper (CP) under Series 15 in an amount of up to ₪920 million. This amount represents a sharp 84% increase compared to the previous rated amount of ₪500 million. The commercial paper received the highest short-term rating, P-1.il. According to Midroog, this rating is given to issuers with "a very high ability to meet their short-term obligations relative to other local issuers."

The basis of financial strength

Bank Leumi's high ratings are anchored in a strong and stable financial profile. Midroog notes that the bank's Baseline Credit Assessment (BCA) - its ability to meet its obligations independently and without external support - stands at aa1.il, just one notch below the top rating. This rating reflects the stability of the bank's funding structure, its liquidity profile, and its liquid assets relative to total public deposits. The stable outlook assigned to the ratings reflects Midroog's expectation that the bank's credit profile will remain stable for the foreseeable future. The expansion of the debt issuance, backed by such a high rating, positions Leumi excellently to raise significant capital from the market to fund its continued growth and business operations.