Obligation Israëli 3.25% ( US46513YJH27 ) en USD

Israëli

100 % ▲

Israel

US46513YJH27 ( en USD )

3.25% par an ( paiement semestriel )

16/01/2028

Prospectus brochure de l'obligation Israel US46513YJH27 en USD 3.25%, échéance 16/01/2028

200 000 USD

1 000 000 000 USD

46513YJH2

17/07/2025 ( Dans 61 jours )

Israël est une nation du Moyen-Orient située sur la côte orientale de la mer Méditerranée, connue pour son histoire riche, sa diversité culturelle et son rôle géopolitique important.

L'Obligation émise par Israëli ( Israel ) , en USD, avec le code ISIN US46513YJH27, paye un coupon de 3.25% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 16/01/2028

This Prospectus Supplement should be read in conjunction with
the Prospectus dated January 6, 2016.
$2,000,000,000
State of Israel
$1,000,000,000 3.250% Bonds due January 17, 2028
$1,000,000,000 4.125% Bonds due January 17, 2048

This is an offering by the State of Israel ("Israel" or the "State of Israel") of an aggregate of $1,000,000,000 3.250% bonds due 2028 (the "2028
bonds") and $1,000,000,000 4.125% bonds due 2048 (the "2048 bonds" and, together with the 2028 bonds, the "bonds").
The bonds will constitute direct, general, unconditional, unsecured and unsubordinated external indebtedness of the State of Israel. The bonds will
rank without preference among themselves and equally with all other unsecured and unsubordinated external indebtedness of Israel and will be backed by
the full faith and credit of Israel. It is understood that this provision shall not be construed to require Israel to make payments under the bonds ratably with
payments being made under any other external indebtedness of Israel.
Interest on the 2028 bonds will be payable semi-annually on January 17 and July 17 of each year, beginning on July 17, 2018. Interest on the 2048
bonds will be payable semi-annually on January 17 and July 17 of each year, beginning on July 17, 2018. The bonds will be issued only in denominations
of $200,000 and integral multiples of $1,000 above that amount.
This prospectus supplement and accompanying prospectus constitute a prospectus for the purposes of Article 5.3 of Directive 2003/71/EC, as
amended (the "Prospectus Directive").
Application has been made to the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the "CSSF"), as
competent authority under the Prospectus Directive, to approve this prospectus supplement and the accompanying prospectus, as a prospectus for the
purposes of the Prospectus Directive. The CSSF assumes no responsibility as to the economic and financial soundness of the transaction or the solvency
of the State of Israel.
Application has been made to list the bonds on the official list of the Luxembourg Stock Exchange and to have the bonds admitted to trading on the
regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg), which is a regulated market for the purposes of the Market in Financial
Instruments Directive (2014/65/EU).
See the section entitled "Risk Factors" beginning on page S-7 for a discussion of certain factors you should consider before investing in the
bonds.
The bonds will be designated collective action securities and will, therefore, contain "collective action clauses," regarding meetings of holders,
acceleration of the bonds in an event of default and future modifications to the terms of the bonds. Some of these provisions differ from those applicable
to certain other series of bonds issued by the State of Israel. Under the provisions applicable to the bonds, which are described beginning on page 5 of the
accompanying prospectus, Israel may amend the payment provisions of the bonds and other "reserve matters" with the consent of the holders of: (1) with
respect to a single series of bonds, more than 75% of the aggregate principal amount outstanding of such series; (2) with respect to two or more series of
bonds, if certain "uniformly applicable" requirements are met, more than 75% of the aggregate principal amount of the outstanding bonds of all series
affected by the proposed modification, taken in the aggregate; or (3) with respect to two or more series of bonds, whether or not the "uniformly
applicable" requirements are met, more than 6623% of the aggregate principal amount of the outstanding bonds of all series affected by the proposed
modification, taken in the aggregate, and more than 50% of the aggregate principal amount of the outstanding bonds of each series affected by the
proposed modification, taken individually.

Per 2028 bonds
Total
Per 2048 bonds
Total
Public Offering Price .............................................................................
99.291%
$ 992,910,000
99.098%
$ 990,980,000
Underwriting discounts and commissions ..............................................
0.125%
$
1,250,000
0.250%
$
2,500,000
Proceeds to the State of Israel (before expenses) ...................................
99.166%
$ 991,660,000
98.848%
$ 988,480,000
The public offering prices set forth above do not include accrued interest, if any. Interest on the 2028 bonds will accrue from January 17, 2018 and
must be paid by the purchaser if the bonds are delivered after January 17, 2018. Interest on the 2048 bonds will accrue from January 17, 2018 and must be
paid by the purchaser if the bonds are delivered after January 17, 2018.
Neither the Securities and Exchange Commission (the "SEC") nor any regulatory body in the United States has approved or disapproved
of these securities or passed upon the accuracy of this prospectus supplement or the accompanying prospectus. Any representation to the
contrary is a criminal offense.
The bonds were delivered on January 17, 2018 (the "issue date") in book-entry form only to purchasers through The Depository Trust Company,
Clearstream Banking, Luxembourg, société anonyme, and the Euroclear System.
Joint Book-Running Managers
Citigroup
Deutsche Bank Securities
Goldman Sachs & Co. LLC
Prospectus Supplement dated February 7, 2018

TABLE OF CONTENTS
Page
Prospectus Supplement
NIS Exchange Rates .................................................................................................................................... S-1
Fiscal Year ................................................................................................................................................... S-1
Official Statements ...................................................................................................................................... S-1
About This Prospectus Supplement ............................................................................................................. S-2
Forward-Looking Statements ...................................................................................................................... S-4
Summary Of The Offering .......................................................................................................................... S-5
Risk Factors ................................................................................................................................................. S-8
Use Of Proceeds ........................................................................................................................................ S-12
Recent Developments ................................................................................................................................ S-13
Description Of The Bonds ......................................................................................................................... S-23
Taxation ..................................................................................................................................................... S-30
Jurisdiction, Consent To Service And Enforceability ............................................................................... S-35
Underwriting ............................................................................................................................................. S-36
Stabilization ............................................................................................................................................... S-38
Offering Restrictions ................................................................................................................................. S-39
Listing, Admission To Trading And General Information ........................................................................ S-43
Validity Of The Bonds .............................................................................................................................. S-45
Incorporation By Reference ...................................................................................................................... S-46
Incorporation By Reference Cross-Reference Table ................................................................................. S-47

Page
Prospectus
Where You Can Find More Information ......................................................................................................... 1
Use Of Proceeds .............................................................................................................................................. 1
Debt Securities ................................................................................................................................................ 1
Governing Law .............................................................................................................................................. 13
Plan Of Distribution ...................................................................................................................................... 13
Official Statements ........................................................................................................................................ 14
Validity Of The Debt Securities .................................................................................................................... 14
Authorized Representative ............................................................................................................................ 14

S-i

NIS EXCHANGE RATES
On January 10, 2018, the Bank of Israel foreign exchange rate for U.S. dollars was 3.4290 New Israeli
Shekels, or NIS, per U.S. dollar. References to dollar, "US$" or "$" in this prospectus supplement are to U.S.
dollars and references to "NIS" or "shekel" are to New Israeli Shekels. For a discussion of the convertibility
of the NIS, see "Currency Protocol" and "Balance of Payments and Foreign Trade -- Foreign Exchange
Controls and International Reserves" in Exhibit D to Israel's Annual Report on Form 18-K for the fiscal year
ended December 31, 2016, as amended.
FISCAL YEAR
The fiscal year of the Government of Israel (the "Government") ends December 31. The twelve-month
period that ended on December 31, 2016 is referred to herein as "2016", and other years are referred to in a
similar manner.
OFFICIAL STATEMENTS
Information included in this prospectus supplement and the accompanying prospectus, including the
documents incorporated herein and therein by reference, that is identified as being derived from a publication
of Israel or one of its agencies or instrumentalities or the Bank of Israel is included on the authority of that
publication as a public official document of Israel or the Bank of Israel. All other information in this
prospectus supplement, the accompanying prospectus and in the registration statement, other than the
information included under the caption "Underwriting", is included as a public official statement made on the
authority of the Director General of the Ministry of Finance of Israel, in his official capacity.

S-1

ABOUT THIS PROSPECTUS SUPPLEMENT
Israel accepts responsibility for the contents of this prospectus supplement and the accompanying
prospectus, including the documents incorporated herein and therein by reference. Israel further declares that,
having taken all reasonable care to ensure that such is the case, the information contained in this prospectus
supplement and the accompanying prospectus is, to the best of its knowledge, in accordance with the facts in
all material respects and contains no material omission likely to affect its import.
A Description of the State of Israel is contained in Exhibit D to the Annual Report of the State of Israel
on Form 18-K for the fiscal year ended December 31, 2016, as amended. Such Annual Report on Form 18-K
for the year ended December 31, 2016 (including its exhibits), as amended, is incorporated by reference in
this prospectus supplement. There have been no material adverse changes that would affect the information
about the State of Israel included in the Description of the State of Israel contained in such Exhibit D as
amended through the date hereof.
Prospective investors should rely on the information provided in this prospectus supplement, the
accompanying prospectus and the documents incorporated by reference in this prospectus supplement and the
accompanying prospectus. No person is authorized by Israel or the underwriters to make any representation
or give any information not contained in this prospectus supplement, the accompanying prospectus or the
documents incorporated by reference in this prospectus supplement and the accompanying prospectus. Any
such representation or information not contained in this prospectus supplement, the accompanying prospectus
or the documents incorporated by reference in this prospectus supplement and the accompanying prospectus
must not be relied upon as having been authorized by Israel or the underwriters. Please see "Incorporation by
Reference" and "Listing, Admission to Trading and General Information -- Where You Can Find More
Information" for information on the documents that are incorporated by reference in this prospectus
supplement and the accompanying prospectus.
Israel is not offering to sell or soliciting offers to buy any securities other than the bonds offered under
this prospectus supplement, nor is Israel offering to sell or soliciting offers to buy the bonds in places where
such offers are not permitted by applicable law. You should not assume that the information in this
prospectus supplement or the accompanying prospectus, or the information incorporated by reference in this
prospectus supplement and the accompanying prospectus, is accurate as of any date other than their
respective dates. Israel's economic, fiscal or political circumstances may have changed since such dates.
The bonds described in this prospectus supplement are debt securities of Israel being offered under a
registration statement filed with the SEC under the U.S. Securities Act of 1933, as amended. The
accompanying prospectus is part of that registration statement. The accompanying prospectus provides you
with a general description of the securities that Israel may offer, and this prospectus supplement contains
specific information about the terms of this offering and the bonds. This prospectus supplement also adds,
updates or changes information provided or incorporated by reference in the accompanying prospectus.
Consequently, before you invest, you should read this prospectus supplement together with the
accompanying prospectus as well as the documents incorporated by reference in this prospectus supplement
and the accompanying prospectus. See "Incorporation by Reference" and "Listing, Admission to Trading and
General Information -- Where You Can Find More Information" for information on the documents that are
incorporated by reference in this prospectus supplement and the accompanying prospectus. Those documents
(such as Israel's Annual Report on Form 18-K for 2016, as amended) contain information regarding Israel,
the bonds and other relevant matters. The registration statement, any post-effective amendments thereto, the
various exhibits thereto, and the documents incorporated therein by reference contain additional information
about Israel and the bonds. Certain terms used but not defined in this prospectus supplement are defined in
the accompanying prospectus.
The distribution of this prospectus supplement and the accompanying prospectus and the offering of the
bonds in certain jurisdictions may be restricted by law. Persons who receive copies of this prospectus
supplement and the accompanying prospectus should inform themselves about and observe any of those
restrictions. See "Underwriting" in this prospectus supplement.

S-2

This prospectus supplement and the accompanying prospectus, including the documents incorporated
by reference in this prospectus supplement and the accompanying prospectus, may be used only for the
purposes for which they have been produced in connection with the offering of the bonds. Any use of this
prospectus supplement and the accompanying prospectus, including the documents incorporated by reference
in this prospectus supplement and the accompanying prospectus, other than in connection with the offering of
the bonds, is unauthorized.

S-3

FORWARD-LOOKING STATEMENTS
Israel has made forward-looking statements in this prospectus supplement and the accompanying
prospectus, including the documents incorporated by reference herein and therein. Statements that are not
historical facts are forward-looking statements. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate",
"believe", "continue", "could", "should", "would" or similar terminology. Any forward-looking statements
in this prospectus supplement and the accompanying prospectus, including the documents incorporated by
reference herein and therein, are based on Israel's current plans, estimates, assumptions and projections, all
of which may change or may not align with actual results. Therefore, you should not place undue reliance on
them. Forward-looking statements speak only as of the date they are made, and Israel undertakes no
obligation to update any of them in light of new information or future events.
Forward-looking statements involve inherent risks. Israel cautions you that many factors could affect
the future performance of the Israeli economy. These factors include, but are not limited to:

External factors, such as:

interest rates in financial markets outside Israel;

the impact of changes in the credit rating of Israel;

the global and regional security situation;

the economic growth and stability of Israel's major trading partners, including the United States
and the European Union;

the global high-tech market; and

regional economic and political conditions.

Internal factors, such as:

general economic and business conditions in Israel;

the security situation in Israel;

present and future exchange rates of the Israeli currency;

foreign currency reserves;

the level of domestic debt;

domestic inflation;

the level of budget deficit;

the level of foreign direct and portfolio investment; and

the level of Israeli domestic interest rates.
S-4

SUMMARY OF THE OFFERING
The following summary should be read as an introduction to this prospectus supplement and is
qualified in its entirety by, and should be read in conjunction with, the more detailed information appearing
elsewhere in this prospectus supplement and the accompanying prospectus, including the "Risk Factors"
section and the documents incorporated by reference in this prospectus supplement and the accompanying
prospectus. You should base any decision to invest in the bonds on consideration of this prospectus
supplement and the accompanying prospectus, including the documents incorporated by reference herein
and therein, as a whole.
Issuer ...................................................... State of Israel.
Title of Securities ................................... $1,000,000,000 3.250% bonds due 2028.
$1,000,000,000 4.125% bonds due 2048.
Maturity Date ........................................ 2028 bonds will mature on January 17, 2028.
2048 bonds will mature on January 17, 2048.
Interest Rate........................................... 3.250% per annum for the 2028 bonds.
4.125% per annum for the 2048 bonds.
Interest Payment Dates ......................... January 17 and July 17 of each year, starting July 17, 2018, for
the 2028 bonds.
January 17 and July 17 of each year, starting July 17, 2018, for
the 2048 bonds.
Price to Public ........................................ 99.291% of the principal amount for the 2028 bonds.
99.098% of the principal amount for the 2048 bonds.
Form ....................................................... Israel will issue the bonds in the form of one or more book-entry
securities in fully registered form, without coupons. Israel will
not issue the bonds in bearer form.
Denominations
Israel will issue the bonds in denominations of $200,000 and
integral multiples of $1,000 above that amount.
Payment of Principal and Interest ....... Principal and interest on the bonds will be payable in U.S. dollars
or other legal tender, coin or currency of the United States of
America.
Status and Ranking ............................... The bonds will be direct, general, unconditional, unsecured and
unsubordinated external indebtedness of Israel. The bonds will
rank without preference among themselves and equally with all
other unsecured and unsubordinated external indebtedness of
Israel. It is understood that this provision shall not be construed
to require Israel to make payments under the bonds ratably with
payments being made under any other external indebtedness of
Israel.
Redemption; Sinking Fund ................... The bonds will not be redeemable prior to maturity and are not
entitled to the benefit of any sinking fund.
Default .................................................... The bonds will contain events of default, the occurrence of which
may result in the acceleration of Israel's obligations under the
bonds prior to maturity upon notice by holders of at least 25% of
the aggregate principal amount of the outstanding bonds. See
"Debt Securities -- Collective Action Securities Issued On or
S-5

After January 5, 2016 -- Default" and "-- Acceleration of
Maturity" in the accompanying prospectus.
Collective Action Securities .................. The bonds will be designated Collective Action Securities under
the Fiscal Agency Agreement, dated as of March 13, 2000, as
amended by Amendment No. 1 thereto, dated as of February 24,
2004, and Amendment No. 2 thereto, dated as of January 5, 2016
and, as such, will contain provisions regarding acceleration and
voting on amendments, modifications, changes and waivers that
differ from those applicable to certain other series of bonds
issued by the State of Israel. Under these provisions, which are
described in the section "Debt Securities -- Collective Action
Securities Issued On or After January 5, 2016" in the
accompanying prospectus, Israel may amend the payment
provisions of the bonds and other "reserve matters" with the
consent of the holders of: (1) with respect to a single series of
debt securities, more than 75% of the aggregate principal amount
outstanding of such series; (2) with respect to two or more series
of debt securities, if certain "uniformly applicable" requirements
are met, more than 75% of the aggregate principal amount of the
outstanding debt securities of all series affected by the proposed
modification, taken in the aggregate; or (3) with respect to two or
more series of debt securities, whether or not the "uniformly
applicable" requirements are met, more than 6623% of the
aggregate principal amount of the outstanding debt securities of
all series affected by the proposed modification, taken in the
aggregate, and more than 50% of the aggregate principal amount
of the outstanding debt securities of each series affected by the
proposed modification, taken individually. Certain of these
actions may be taxable events requiring holders to recognize gain
or loss for U.S. federal income tax purposes. See "Taxation --
United States" in this prospectus supplement.
Listing and Listing Agent ..................... Application has been made to list the bonds on the official list
and admit the bonds to trade on the Regulated Market of the
Luxembourg Stock Exchange. The Luxembourg listing agent will
be Banque Internationale à Luxembourg, société anonyme.
Fiscal Agent ............................................ The bonds will be issued pursuant to a Fiscal Agency Agreement
dated as of March 13, 2000, as amended by Amendment No. 1 to
Fiscal Agency Agreement dated as of February 24, 2004, and
Amendment No. 2 to Fiscal Agency Agreement dated as of
January 5, 2016, between Israel and Citibank, N.A., as fiscal
agent, paying agent, transfer agent and registrar.
Taxation ................................................. For a discussion of the material Israeli and United States federal
income tax consequences associated with the bonds, see
"Taxation" in this prospectus supplement and "Debt Securities --
Taxation by Israel; Additional Amounts" in the accompanying
prospectus. Investors should consult their own tax advisors in
determining the U.S. federal, state and local, non-U.S. and other
tax consequences to them of the purchase, ownership and
disposition of the bonds.
Further Issuances .................................. From time to time, without the consent of holders of the bonds,
and subject to the required approvals under Israeli law, Israel
may create and issue additional debt securities with the same
S-6

terms and conditions as those of the bonds (except for the amount
of the first interest payment and the issue price); provided that
such additional debt securities, for U.S. federal income tax
purposes, are treated as having the same tax characteristics as the
bonds. See "Debt Securities -- Collective Action Securities
Issued On or After January 5, 2016" in the accompanying
prospectus.
Governing Law ...................................... The bonds will be governed by the laws of the State of New
York, except with respect to the authorization and execution of
the bonds, which will be governed by the laws of the State of
Israel.
Risk Factors ........................................... There are certain risks relating to the issue of the bonds, which
investors should ensure they fully understand. See "Risk
Factors."
Where a claim relating to the information contained in this prospectus supplement or the accompanying
prospectus is brought before a court, the plaintiff investor might, under the national legislation of the place
of jurisdiction, have to bear the costs of translating this prospectus supplement and the accompanying
prospectus before the legal proceedings are initiated.
S-7

RISK FACTORS
You should read this entire prospectus supplement, the accompanying prospectus and the documents
incorporated by reference herein and therein carefully. Words and expressions defined elsewhere in this
prospectus supplement or the accompanying prospectus have the same meaning in this section. Investing in
the bonds involves certain risks. Factors that are material for assessing the market risks associated with the
bonds are described below. You should consult with your financial, tax, legal, accounting and other advisors
prior to deciding whether to make an investment in the bonds.
Risks related to the bonds
The bonds may not be a suitable investment for all investors.
You must determine the suitability of investment in the bonds in light of your own circumstances. In
particular, you should:
(1)
have sufficient knowledge and experience to make a meaningful evaluation of the bonds and
the merits and risks of investing in the bonds;
(2)
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of
your particular financial situation, an investment in the bonds and the impact the bonds will
have on your overall investment portfolio;
(3)
have sufficient financial resources and liquidity to bear all of the risks of an investment in the
bonds, including where the currency for principal or interest payments is different from your
currency;
(4)
understand thoroughly the terms of the bonds and be familiar with the behavior of any
relevant indices and financial markets; and
(5)
be able to evaluate (either alone or with the help of a financial advisor) possible scenarios for
economic, interest rate and other factors that may affect your investment and your ability to
bear the applicable risks.
There is no assurance that active secondary markets for the bonds will develop.
The bonds are new securities for which there currently are no public markets. There can be no
assurance that an active trading market for any series of the bonds will develop, or, if one does develop, that
it will be maintained. If an active trading market for any series of the bonds does not develop or is not
maintained, the market or trading price and liquidity of such series of the bonds may be adversely affected. If
the bonds are traded after their initial issuance, they may trade at a discount to their initial offering price,
depending upon prevailing interest rates, the market for similar securities, recommendations from securities
analysts, general economic conditions and the financial condition of the State of Israel. Although an
application will be made to list and trade the bonds on the Regulated Market "Bourse de Luxembourg" of the
Luxembourg Stock Exchange, there is no assurance that such application will be accepted. Even if the bonds
are approved for listing and trading by the Regulated Market "Bourse de Luxembourg" of the Luxembourg
Stock Exchange, active trading markets for the bonds on the Regulated Market "Bourse de Luxembourg" of
the Luxembourg Stock Exchange may not develop or, even if they develop, may not last, in which case the
trading price of the bonds could be adversely affected and your ability to transfer the bonds will be limited.
The bonds contain provisions that permit Israel to amend the payment terms and take certain other
actions without the consent of all holders.
The bonds contain provisions regarding acceleration and voting on amendments, modifications, changes
and waivers, which are commonly referred to as "collective action clauses." For a description of the
collective action clauses applicable to the bonds, see "Debt Securities -- Collective Action Securities Issued
On or After January 5, 2016 -- Meetings and Amendments; Modifications" in the accompanying prospectus.
S-8