Obligation Israëli 3.375% ( US46513JXN61 ) en USD

Société émettrice Israëli
Prix sur le marché refresh price now   100 %  ▲ 
Pays  Israel
Code ISIN  US46513JXN61 ( en USD )
Coupon 3.375% par an ( paiement semestriel )
Echéance 14/01/2050



Prospectus brochure de l'obligation Israel US46513JXN61 en USD 3.375%, échéance 14/01/2050


Montant Minimal 200 000 USD
Montant de l'émission 2 000 000 000 USD
Cusip 46513JXN6
Prochain Coupon 15/01/2026 ( Dans 32 jours )
Description détaillée 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 israélienne (ISIN : US46513JXN61, CUSIP : 46513JXN6) d'une valeur nominale de 2 000 000 000 USD, échéant le 14/01/2050, avec un coupon de 3,375 % payable semestriellement, est actuellement négociée à 100 % du pair, par lots minimum de 200 000 USD.








This Prospectus Supplement should be read in conjunction with
the Prospectus dated June 1, 2018.
$3,000,000,000

State of Israel
$1,000,000,000 2.500% Bonds due January 15, 2030
$2,000,000,000 3.375% Bonds due January 15, 2050

This is an offering by the State of Israel ("Israel" or the "State of Israel") of an aggregate of $1,000,000,000 2.500% bonds due 2030 (the
"2030 bonds") and $2,000,000,000 3.375% bonds due 2050 (the "2050 bonds" and, together with the 2030 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 2030 bonds will be payable semi-
annually on January 15 and July 15 of each year, beginning on July 15, 2020. Interest on the 2050 bonds will be payable semi-annually on January 15
and July 15 of each year, beginning on July 15, 2020. The bonds will be issued only in denominations of $200,000 and integral multiples of $1,000
above that amount.
This prospectus supplement and the accompanying prospectus constitute a prospectus for the purposes of Article 6 (3) of Regulation (EU)
2017/1129 (the "Prospectus Regulation"). This prospectus supplement and the accompanying prospectus have been approved by the Commission
de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the "CSSF"), as competent authority under the Prospectus Regulation, on
February 17, 2020. The CSSF assumes no responsibility as to the economic and financial soundness of the transaction or the solvency of the State
of Israel. The CSSF only approves this prospectus supplement and the accompanying prospectus as meeting the standards of completeness,
comprehensibility and consistency imposed by the Prospectus Regulation. Such approval should not be considered as an endorsem ent of the quality
of the bonds that are the subject of this prospectus supplement and the accompanying prospectus. Investors should make their own assessment as to
the suitability of investing in the bonds. This prospectus supplement and the accompanying prospectus shall be valid until February 17, 2021, the
date that is 12 months after the date of such approval. The obligation to supplement this prospectus supplement and the accompanying prospectus
in the event of significant new factors, material mistakes or material inaccuracies does not apply when this prospectus supplement and the
accompanying prospectus are no longer valid. 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) (as amended, "MiFID II").
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 applica ble 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 aggregat e 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 2030 bonds

Total

Per 2050 bonds

Total

Public Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99.561%
$995,610,000
97.526%
$1,950,520,000
Underwriting discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.125%
$ 1,250,000
0.250%
$
5,000,000
Proceeds to the State of Israel (before expenses) . . . . . . . . . . . . . . . .
99.436%
$994,360,000
97.276%
$1,945,520,000
The public offering prices set forth above do not include accrued interest, if any. Interest on the bonds will accrue from January 15, 2020 and
must be paid by the purchaser if the bonds are delivered after January 15, 2020. 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 15, 2020 (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
BofA Securities, Inc.
Citigroup
Goldman Sachs & Co. LLC
Prospectus Supplement dated February 17, 2020





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-3
Overview of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-4
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-7
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-11
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-12
Description of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-19
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-26
Jurisdiction, Consent to Service and Enforceability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-31
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-32
Stabilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-34
Offering Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-35
Listing, Admission to Trading and General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-38
Validity of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-41
Incorporation by Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-41
Incorporation by Reference Cross-Reference Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-42
Page
Prospectus
Where You Can Find More Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Governing Law ............................................................................................................................................................. 12
Plan of Distribution ....................................................................................................................................... 12
Official Statements ........................................................................................................................................ 13
Validity of the Debt Securities ....................................................................................................................... 13
Authorized Representative ............................................................................................................................. 13


S-i



NIS EXCHANGE RATES
On January 8, 2020, the Bank of Israel foreign exchange rate for U.S. dollars was 3.4650 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, 2018, 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, 2018 is referred to herein as "2018", 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 a s 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 Ministr y 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 impor t.
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, 2018, as amended. Such Annual Report on
Form 18-K for the year ended December 31, 2018 (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 accompanyin g 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 2018, 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.
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-2



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 or 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-3






OVERVIEW OF THE OFFERING
The following overview 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 2.500% bonds due 2030.
$2,000,000,000 3.375% bonds due 2050.
Maturity Date . . . . . . . . . . . . . . . . .
2030 bonds will mature on January 15, 2030.
2050 bonds will mature on January 15, 2050.
Interest Rate ..................................................2.500% per annum for the 2030 bonds.
3.375% per annum for the 2050 bonds.
Interest Payment Dates . . . . . . . . . . .
January 15 and July 15 of each year, starting July 15, 2020, for
the 2030 bonds.
January 15 and July 15 of each year, starting July 15, 2020, for
the 2050 bonds.
Price to Public ................................................99.561% of the principal amount for the 2030 bonds.
97.526% of the principal amount for the 2050 bonds.
Form . . . . . . . . . . . . . . . . . . . . . . . .
Israel will issue each series of 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 of the relevant series. See "Debt
Securities -- Collective Action Securities Issued On or After
January 5, 2016 -- Default" and "-- Acceleration of
Maturity" in the accompanying prospectus.

S-4






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.
Use of Proceeds . . . . . . . . . . . . . . . .
Israel will use the net proceeds from the sale of the bonds
offered hereby, estimated to be US$2,939,605,000 after
deducting underwriting discounts and offering expenses
payable by Israel, for the general purposes of the State of
Israel. See "Use of Proceeds."
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

S-5






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 terms and conditions as those of the bonds (or the same
except for the amount of the first interest payment); provided
that, if such additional debt securities are not fungible with
the outstanding bonds for U.S. federal income tax purposes,
such additional debt securities will have a separate CUSIP or
other identifying number. See "Description of the
Bonds -- Further Issuances of Debt Securities of a Series."
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-6



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 your financial, tax, legal, accounting and other advisors prior to
deciding whether to make an investment in the bonds.

Risks related to the State of Israel and the geopolitical and economic environment.

External factors, including regional and international political and economic conditions, may adversely affect
the trading price of the bonds and Israel's access to credit.
Israel's access to credit in the international capital markets is affected by regional and international
political and economic conditions, including interest rates in financial markets outside Israel, the impact of
changes in the credit rating of Israel, the global, regional and Israeli security situations, the economic
growth and stability of Israel's major trading partners and the global high-tech market. As a result,
political, economic or market factors, which may be outside Israel's control, may impact the debt dynamics
of Israel and could adversely affect Israel's cost of funds in the international capital markets and the
liquidity of and demand for Israel's debt securities, including the bonds. In addition, any negative change in
the credit rating of Israel could adversely affect the trading price of Israel's debt securities, including the
bonds.

Israel's political, economic and military environment may continue to be volatile.
Israel has from time to time experienced political situations and has been subject to ongoing security
concerns. Since the establishment of the State of Israel in 1948, a number of armed conflicts have occurred
between Israel and its Arab neighbors. Political instability in the Middle East has increased since the
terrorist attacks of September 11, 2001 and news of Iran's reported nuclear program. Since 2005, when
Israel withdrew from the Gaza strip, terrorist violence from Gaza has increased. If the level of instability
and violence increases in the future, Israel's capital markets, the level of tourism in Israel and foreign
investment in Israel, among other things, may suffer. The conflicts with Hamas in the Gaza strip and with
Hezbollah in Lebanon may worsen and potentially affect Israel's economic condition. In addition, political
situations may affect the stability of the Israeli economy.
Since January 2011, there has been political instability and civil unrest in numerous Middle Eastern
and North African countries, including Bahrain, Libya, Egypt, Tunisia, Yemen and Syria. This unrest has
resulted in the removal of long-standing leadership in several of the aforementioned countries and created
turbulent political situations in others.
As Israel is situated in this region, it closely monitors these events, aiming to protect its economic,
political and security interests. The delicate relations between Israel and its neighbors could become even
more fragile with the domestic turmoil and change in regimes. Instability in the Middle East and North
Africa region have so far not materially affected Israel's financial or political situation, and countries that
have signed peace agreements with Israel have remained committed to them, regardless of internal political
developments.
Nevertheless, there can be no assurance that such instability in the region will not escalate in the future
or will not spread to additional countries in the region. Military efforts have significantly decreased the
presence of the Islamist militia group known as ISIS in Syria and Iraq, but there is growing concern
regarding Shiite militias taking control over the relinquished territory and the creation of a land corridor
from Tehran to the Mediterranean under Iranian influence.
In 2019, there were two general elections; however, after each election, a coalition government was not
formed by the deadline. As a result, Israel's current government is a transitional government and therefore
certain of its decision-making powers are limited. There is a risk that this current political situation, which

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limits the government's ability to enact reforms and requires the adoption of the last approved budget, may
have a negative impact on Israel's economy. This risk will continue until the next elections are held in March
2020, assuming a new government is formed after these elections.

Israel is a foreign sovereign state and accordingly it may be difficult to obtain or enforce judgments against it.
Israel is a sovereign state. Although Israel has waived its sovereign immunity in respect of the bonds,
except for its sovereign immunity in connection with any actions arising out of or based on United States
federal or state securities laws, enforcement in the event of a default may nevertheless be impracticable by
virtue of legal, commercial, political or other considerations.
Because Israel has not waived its sovereign immunity in connection with any action arising out of or
based on United States federal or state securities laws, it will not be possible to obtain a United States
judgment against Israel based on such laws unless a court were to determine that Israel is not entitled under
the United States Foreign Sovereign Immunities Act of 1976, as amended, to sovereign immunity with
respect to such actions.

The current global economic climate and continued economic disruption in Europe may have an adverse effect
on Israel's economy.
Israel's economy is affected by global economic conditions, including regional and international rates
of economic growth. Recent developments in the global economy, including the British referendum and
subsequent efforts to leave the European Union, have led to increased market volatility and decreased
consumer confidence. The potential impact of these developments on the Israeli economy is uncertain.
Although Israel's economy has shown moderate rates of growth in recent years, there can be no assurance
that Israel's economy will continue to grow in the case of a prolonged negative global economic climate.
As a result of the sovereign debt crisis in Europe, there was significant price volatility in the secondary
market for sovereign debt of European and other nations at the beginning of this decade. If such price
volatility resumes, it could lead to a decline in the recoverability and value of the market price of Israel's
debt securities, including the bonds. Sluggish economic growth or negative growth in the European Union,
which is one of Israel's major trading partners, could have a material adverse impact on Israel's balance of
trade and adversely affect Israel's financial condition.

The successful development of Israel's natural gas reserves involves certain risks that may make expected
natural gas production levels unobtainable.
There are numerous uncertainties associated with estimating quantities of natural gas reserves and
projecting future rates of production and the level of revenue Israel will receive from its natural gas fields.
These items are, in part, dependent on the reliability of seismic measurement technologies and the future
international market for natural gas and other energy substitutes, as well as future development and
operating costs, all of which may vary considerably from Israel's current assumptions. Moreover, certain of
Israel's neighboring countries have asserted mineral rights with respect to certain natural gas reserves to
which Israel currently lays claim. Any failure to meet expected natural gas production targets on the
forecasted timelines, or at all, could have a negative impact on Israel's progress towards energy
independence or the revenues that will be received by the State of Israel.

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;

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