Bank Leumi Raises US$750m Tier 2 Subordinated Notes From International Institutional Investors; A First in the Israeli Financial Sector

TEL AVIV, Israel, Jan. 23, 2020 /PRNewswire/ -- Bank Leumi (TASE: LUMI) has priced a ground-breaking transaction for the Israeli financial sector with an issuance of US$750m 11NC6 Tier-2 Subordinated Notes. Demand came from international top-tier institutional investors after completing a roadshow in the USA and the UK, as well as calls into Europe and Asia. The issuance attracted substantial demand in excess of US$4 billion.

Leumi is the first Israeli bank to issue debt to institutional investors outside Israel, which will be listed on the Tel-Aviv Stock Exchange (TACT- Institutional). As such, Leumi has substantially expanded its debt investor base, previously open solely to Israeli institutional investors. 

Hanan Friedman, President and CEO, commented: "The amazing results of the issuance, including the demand which surpassed expectations, are a testament to the confidence of institutional investors worldwide in Bank Leumi and in its competitive leading position in the market."

Omer Ziv, First EVP and CFO, stated: "After holding dozens of meetings and calls with institutional investors across the US, Europe and Asia, I was highly impressed by the recognition in Bank Leumi specifically, and the Israeli economy in general. Significant demand came from leading Institutional Investors worldwide, following discussions on the Israeli economy and Leumi's performance, strategy and competitive stance. The excellent results are similar to the yields achieved by leading banks across the world - a great success in all respects."

The issuance was led by Citigroup Global Markets Limited as Global Coordinator and Structuring Advisor, together with HSBC Bank plc, Morgan Stanley and BNP Paribas as Joint Bookrunners. Bank Leumi was advised on this offering by White & Case LLP, and by Herzog Fox & Neeman.

About Bank Leumi:

Bank Leumi (TASE: LUMI) is Israel's leading banking corporation, providing comprehensive financial services and holding nearly 30% of the domestic market share. Headquartered in Tel Aviv, Leumi has a presence in key global financial centers, including New York, London, Palo Alto and Shanghai. In 2018, Leumi reported a net profit of NIS 3.3 billion ($880 million), with total assets under management reaching NIS 1,434 billion ($383 billion).

This announcement is not an offer of securities for sale in the United States, Israel, Canada, Australia, Japan or any other jurisdiction. The Bank has not registered, and does not intend to register, the Subordinated Notes in any of these jurisdictions or to conduct a public offering of the Subordinated Notes in any of these jurisdictions. In particular, no securities of the Bank referred to in this announcement have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws. In the United States, any offer will be made only to "qualified institutional buyers" as defined in and in reliance on Rule 144A under the Securities Act or another available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Outside the United States, any offer will be made to persons other than "U.S. Persons" in accordance with Regulation S under the Securities Act. 

For more information visit www.leumi.co.il or contact Daphna Golden, VP, Head of Investor Relations, at [email protected]

SOURCE Bank Leumi

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