Ministry of Finance began the process of issuing a 10-year green bond

The Accountant General Division of the Ministry of Finance today began the process of issuing a 10-year green bond, in the amount of 2 billion dollars - Israel's first green debt collection.
The issue is expected to close during the night, but the Treasury reports high demand from international institutions that have already crossed the 10 billion dollar mark - in view of the demand, Gortz notes at the Treasury, the issue will close at an interest rate of about 4.5%.
In raising green bonds, the state undertakes to spend an amount equal to the scope of the fundraising for 'green' purposes. Accordingly, in the case of the current issue, the Israeli government undertakes to spend approximately NIS 10 billion for green projects - as the definition of such projects in issues of the aforementioned type is international.
It is also required in a green IPO that the recruiting government obliges to report on the purposes for which the money was invested (allocation report) as well as on the impact of the projects in question on Israel's energy efficiency (impact report). Israel's entry into the green bond track was approved by the SPO company, and this company is also expected to monitor Israel's reports regarding the impact of the climate.
The first dollar since March 2020, and in the first issue since the establishment of the current government.
Among the expenses recognized as suitable for issuing green debt is the establishment of mass transit systems without emissions, and therefore it is quite possible that Israel will include the railway electrification project in its investment reports. The category of green spending also includes projects for the construction and operation of water facilities, wastewater treatment, as well as renovation of existing buildings in order to reduce their energy consumption.
The scope of the bond is very low in relation to the state budget, so there will be no problem for the State of Israel to meet the conditions of the green bond without a general acceleration in dealing with the climate crisis. At the same time, issuing green debt can promote a country's reputation in the field. The decision on the issue has another reason. In recent years, many funds have begun to accumulate in funds that only invest in 'green' routes, and the Israeli government wants to have access to this financing channel.