When Israel was founded in 1948 it faced a dire economic and security challenge. Israel had no money, its economy was agrarian based, and it lacked a basic infrastructure, and had to absorb hundreds of thousands of immigrants. Its main export was the Jaffa orange. Prime Minister David Ben Gurion knew that Israel would not survive and flourish with these issues and oranges as the economic centerpiece. Israel needed capital to improve the country, but there were fears about Israel’s ability to survive and lenders had concerns about Israel’s creditworthiness. Consequently, Israel was not able to borrow money.
In 1951, Ben Gurion took a risk and traveled to Madison Square Garden to raise $25 million for the fledgling country by floating the first issue of Israel bonds. Israel ended up selling $50 million. Following this success the Israel Bonds/Development Corporation for Israel program was established.
Since 1951, more than $44B worth of bonds have been sold worldwide, providing Israel with much needed capital that has helped all aspects of its economy and development. Every interest and principal payment has been made in full and on time by Israel.
Israel Bonds helped transform Israel from a small agrarian country to a world leader in technology and innovation, making Israel a true “start up nation.” Despite, Israel’s successes, there is much work to be done.
Israel still relies on Israel Bonds to help keep the economy strong and the diaspora community connected to Israel.
Israel bonds can be purchased in portfolios, trusts, and retirement accounts. Israel bonds can also be purchased as personal gifts for a variety of simchas. Investors can also do a double mitzvah by buying bonds and donating them to your a favorite non-profit. Israel will receive the funds at present and the designated non-profit will receive the interest as it come due and principal at maturity.
To learn how to become a partner Israel’s continued success and for rates and prospectuses, please contact Matt Kleiman at the Milwaukee office.
DEVELOPMENT CORPORATION FOR ISRAEL/ISRAEL BONDS
8989 N Port Washington Rd, Suite 200
Milwaukee WI, 53217
This is not an offering which can be made only by prospectus. Read it carefully before investing to evaluate the risks associated with investing.