White & Case Guides Bank Leumi on Landmark €750 Million Covered Bond Issuance

Global law firm White & Case LLP has advised Bank Leumi le-Israel B.M. (Bank Leumi) on the establishment of its €3 billion Covered Bond Programme and the issuance of €750 million 3.197% covered bonds due 2031 – the first-ever international offering of covered bonds by an Israeli issuer. "This transaction marks a milestone by opening new euro-denominated funding avenues for Israeli financial institutions – a significant landmark for Bank Leumi and watershed moment for the Israeli financial sector, establishing a new funding mechanism for Israeli banks," said White & Case partner Neha Saran, who led the Firm's deal team. "The complex structuring involved, including SPV guarantor, periodic reporting and hedging, among other things, demonstrates Bank Leumi's strength in international capital markets and the maturity of Israel's financial sector." The bond issuance, priced at 3.197%, attracted strong investor demand from international investors and was six times oversubscribed. The bonds achieved strong credit ratings of AA- and Aa3 by Fitch and Moody's, respectively. The transaction involved sophisticated structuring, including complex cross-currency swap and interest rate swap arrangements, on which White & Case also advised. "The White & Case team advised on a landmark transaction which reflects our Firm's long and successful track record advising on significant and precedent-setting capital markets transactions in Israel," said White & Case partner Dan Turgel, head of the Firm's Israel practice. White & Case has advised Bank Leumi on multiple precedent-setting transactions, including its inaugural US$500 million senior notes issue (2022) and inaugural US$750 million Tier 2 subordinated notes issue (2020). Bank Leumi, Israel's largest bank by assets and market capitalisation, is the first Israeli bank to access the covered bond market. The bonds were offered under Regulation S and listed on TASE-UP (Tel Aviv Stock Exchange). Barclays acted as global coordinator with JPMorgan, Goldman Sachs and UBS acting as joint lead managers. The White & Case team in London that advised on the transaction was led by partner Neha Saran and included partners Stuart Matty and Anna Soroka, counsel Phillan Amin and associates Ece Kuregibuyuk and Celine Ng.