Obligation Israëli 2.5% ( XS1936101291 ) en EUR

Israëli

100 % ▲

Israel

XS1936101291 ( en EUR )

2.5% par an ( paiement annuel )

15/01/2049

Prospectus brochure de l'obligation Israel XS1936101291 en EUR 2.5%, échéance 15/01/2049

1 000 EUR

1 250 000 000 EUR

16/01/2026 ( Dans 33 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 EUR, avec le code ISIN XS1936101291, paye un coupon de 2.5% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 15/01/2049

EXECUTION VERSION
FINAL TERMS
MiFID II product governance / Retail investors, professional investors and ECPs target market Solely for the
purposes of each manufacturer's product approval process, the target market assessment in respect of the Notes has led
to the conclusion that: (i) the target market for the Notes is eligible counterparties, professional clients and retail clients,
each as defined in Directive 2014/65/EU (as amended, "MiFID II"); (ii) all channels for distribution of the Notes are
appropriate to eligible counterparties and professional clients; and (iii) the following channels for distribution of the
Notes to retail clients are appropriate investment advice and portfolio management. Any person subsequently offering,
selling or recommending the Notes (a "distributor") should take into consideration the manufacturers' target market
assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment
in respect of the Notes (by either adopting or refining the manufacturers' target market assessment) and determining
appropriate distribution channels, subject to the distributor's suitability and appropriateness obligations under MiFID II,
as applicable.
Final Terms dated 14 January 2019
STATE OF ISRAEL
Legal Entity Identifier ("LEI"): 213800T8ZHTFZIBYPE21
Issue of EUR 1,250,000,000 2.500 per cent. Notes due 16 January 2049
(the "Notes")
under the EUR 10,000,000,000
Euro Medium Term Note Programme
The Base Prospectus referred to below (as completed by these Final Terms) has been prepared on the basis that any
offer of Notes in any Member State of the European Economic Area which has implemented the Prospectus Directive
will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Member State, from the
requirement to publish a prospectus for offers of the Notes. Accordingly any person making or intending to make an
offer in that Member State of the Notes may only do so in circumstances in which no obligation arises for the Issuer or
any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus
pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. Neither the Issuer nor any
Dealer has authorised, nor do they authorise, the making of any offer of Notes in any other circumstances.
The expression "Prospectus Directive" means Directive 2003/71/EC (as amended, including by Directive
2010/73/EU), and includes any relevant implementing measure in each Member State of the European Economic Area
which has implemented the Prospectus Directive.
PART A CONTRACTUAL TERMS
Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth in the Base
Prospectus dated 9 August 2018 and the supplement to it dated 4 January 2019 which together constitute a base
prospectus for the purposes of the Prospectus Directive (the "Base Prospectus"). This document constitutes the Final
Terms of the Notes described herein for the purposes of Article 5.4 of the Prospectus Directive and must be read in
conjunction with the Base Prospectus as so supplemented. Full information on the Issuer and the offer of the Notes is
only available on the basis of the combination of these Final Terms and the Base Prospectus as so supplemented.
However, a summary of the issue of the Notes is annexed to these Final Terms. The Base Prospectus and the
supplement thereto have been published on the website of the Regulatory News Service operated by the London Stock
Exchange at www.londonstockexchange.com/exchange/news/market-news/market-news-home.html and is available for
viewing at, and copies may be obtained from, the Ministry of Finance of Israel at 1 Kaplan Street/Hakiria, Jerusalem
91131, Israel and the offices of Citibank NA London Branch at Citigroup Centre, Canada Square, Canary Wharf,
London E14 5LB, United Kingdom.
1.
Issuer:
State of Israel
2.
(i)
Series Number:
18
(ii)
Tranche Number:
1
0032521-0000059 ICM:31765990.7
1

(iii)
Date on which the Notes become fungible:
Not Applicable
3.
Specified Currency:
Euro ("EUR")
4.
Aggregate Nominal Amount:

(i) Series:
EUR 1,250,000,000
(ii) Tranche:
EUR 1,250,000,000
5.
Issue Price:
98.816 per cent. of the Aggregate Nominal Amount
6.
(i)
Specified Denomination(s):
EUR 1,000
(ii)
Calculation Amount:
EUR 1,000
7.
(i)
Issue Date:
16 January 2019
(ii)
Interest Commencement Date:
Issue Date
8.
Maturity Date:
16 January 2049
9.
Interest Basis:
2.500 per cent. Fixed Rate
10.
Redemption Basis:
Subject to any purchase and cancellation or early
redemption, the Notes will be redeemed on the
Maturity Date at 100 per cent. of their nominal
amount.
11.
Put/Call Options:
Not Applicable
PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE
12.
Fixed Rate Note Provisions
Applicable
(i)
Rate of Interest:
2.500 per cent. per annum payable in arrear on each
Interest Payment Date
(ii)
Interest Payment Date(s):
16 January in each year, from and including 16
January 2020, up to and including the Maturity Date;
not adjusted
(iii)
Fixed Coupon Amount:
EUR 25.00 per Calculation Amount
(iv)
Broken Amount(s):
Not Applicable
(v)
Fixed Day Count Fraction:
Actual/Actual (ICMA)
13.
Floating Rate Note Provisions
Not Applicable
14.
Zero Coupon Note Provisions
Not Applicable
PROVISIONS RELATING TO REDEMPTION

15.
Notice periods for Condition 6(b) and 6(c):
Not Applicable
16.
Issuer Call
Not Applicable
17.
Investor Put
Not Applicable
18.
Final Redemption Amount of each Note
EUR 1,000 per Calculation Amount
19.
Early Redemption Amount

Early Redemption Amount(s) per Calculation Amount EUR 1,000 per Calculation Amount
payable on redemption for taxation reasons or on event
of default or other early redemption:
GENERAL PROVISIONS APPLICABLE TO THE NOTES

0032521-0000059 ICM:31765990.7
2

PART B -- OTHER INFORMATION

1.
LISTING AND ADMISSION TO TRADING
Application will be made for the Notes to be admitted to listing on the Official List of the UK Listing
Authority and to trading on the Regulated Market of the London Stock Exchange effective as of 16 January
2019.
2.
RATINGS
The Notes to be issued have been rated:
S&P Global Ratings, acting through Standard and Poor's Credit Market Services Europe Limited: AA-
Moody's Investors Service, Inc.: A1
Fitch Ratings Ltd: A+
3.
INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE/OFFER
The Issuer is not aware of any interest(s) material to the issue of the Notes, other than any fees payable to the
Joint Lead Managers.
4.
REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES
Reasons for the offer:
The net proceeds from the issue of the Notes will be used
for the general financing purposes of the Issuer.
Estimated net proceeds:
EUR 1,232,075,000
Estimated total expenses:
£4,560
5.
YIELD
Indication of yield: 2.557 per cent per annum
6.
OPERATIONAL INFORMATION
ISIN:
XS1936101291
Common Code:
193610129
CFI Code:
DTFXFR
FISN:
STATE OF ISRAEL/1EMTN 20490118
Any clearing system(s) other than Euroclear Not Applicable
Bank SA/NV and Clearstream Banking S.A. and
the relevant identification number(s):
Names and addresses of additional Paying Not Applicable
Agent(s) (if any):
Delivery:
Delivery against payment
7.
DISTRIBUTION

Method of distribution:
Syndicated
If syndicated:
Applicable

(i)
Names and addresses of Managers and Barclays Bank PLC
underwriting commitments:
5 The North Colonnade
Canary Wharf
London E14 4BB
England

0032521-0000059 ICM:31765990.7
4

BNP Paribas
10 Harewood Avenue
London NW1 6AA
England

Goldman Sachs International
Peterborough Court
133 Fleet Street
London EC4A 2BB
England
(ii)
Date of Subscription Agreement:
14 January 2019
(iii)
Stabilisation Manager:
BNP Paribas
If non-syndicated, name of Manager:
Not Applicable
Indication of the overall amount of the 0.250 per cent. of the Aggregate Nominal Amount
underwriting commission and of the placing
commission:
U.S. Selling Restrictions:
Regulation S Compliance Category 1; TEFRA not
applicable

0032521-0000059 ICM:31765990.7
5

SUMMARY OF THE ISSUE
Summaries are made up of disclosure requirements known as "Elements". These elements are numbered in Section A 
E (A.1 E.7).
This summary contains all the Elements required to be included in a summary for this type of securities and Issuer.
Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the
Elements.
Even though an Element may be required to be inserted in the summary because of the type of securities and Issuer, it is
possible that no relevant information can be given regarding the Element. In this case a short description of the
Element is included in the summary with the mention of "Not Applicable".
Words and expressions defined in the Base Prospectus have the same meanings in this summary.

SECTION A INTRODUCTION AND WARNINGS
A.1
Introduction and
This summary must be read as an introduction to the Base Prospectus and any
Warnings.
decision to invest in the Notes should be based on a consideration of the Base
Prospectus as a whole, including any information incorporated by reference.
Following the implementation of the Prospectus Directive in each Member State
of the European Economic Area, no civil liability will attach to the Issuer in any
such Member State solely on the basis of this summary, including any translation
thereof, unless it is misleading, inaccurate or inconsistent when read together with
the other parts of the Base Prospectus, including any information incorporated by
reference or it does not provide, when read together with the other parts of the
Base Prospectus, key information in order to aid Investors when considering
whether to invest in the Notes.
Where a claim relating to the information contained in the Base Prospectus is
brought before a court in a Member State of the European Economic Area, the
plaintiff may, under the national legislation of the Member States, be required to
bear the costs of translating the Base Prospectus before the legal proceedings are
initiated.
A.2
Consent to use of the
Not Applicable. The Notes may only be offered within the EEA to qualified
Base Prospectus.
investors (as defined in the Prospectus Directive) on an exempt basis pursuant to
Article 3(2) of the Prospectus Directive. The Issuer has not, and will not, give its
consent for any financial intermediary or other offeror to use the Base Prospectus
in connection with any offer of the Notes.

SECTION B THE ISSUER
B.17
Credit ratings.
The long-term foreign currency sovereign credit ratings of the Issuer are: A1
(Moody's Investors Service, Inc.), AA- (Standard & Poor's Credit Market
Services Europe Limited) and A+ (Fitch Ratings Ltd).
The Programme has also been rated (P)A1 by Moody's Investors Service, Inc.,
AA- by S&P Global Ratings, acting through Standard and Poor's Credit Market
Services Europe Limited and A+ by Fitch Ratings Ltd.

0032521-0000059 ICM:31765990.7
6

SECTION B THE ISSUER

The Notes to be issued have been rated:
S&P Global Ratings, acting through Standard and Poor's Credit Market Services
Europe Limited: AA-.
Moody's Investors Service, Inc.: A1.
Fitch Ratings Ltd: A+.
B.47
Description
of
the
State of Israel is a sovereign issuer, located in the State of Israel.
Issuer, including its The Israeli economy grew based on preliminary estimations, at a pace of 3.2% in
economy.
2018, as compared to growth rates of 3.5% in 2017, 4.0% in 2016, 2.6% in 2015
and 3.9% in 2014. In 2017, gross domestic product ("GDP") increased by 0.8%,
3.8%, 4.7% and 4.4% in the first, second, third and fourth quarters, respectively,
and in 2018, GDP increased by 4.3%, 0.8% and 2.1% in the first, second and
third quarters, respectively, in each case compared to the previous quarter, using
seasonally adjusted data at an annualised rate; the low growth rate in the first
quarter of 2017 was due, among other things, to a drop in vehicle purchases,
following a peak in the fourth quarter of 2016.
In 2014, business sector product (calculated as GDP less certain general
government services, services of private non-profit institutions and housing
services) decreased compared to the 2013 growth rate, as business sector output
grew by 3.5% in 2014. This slowdown was partly due to the negative effects of
Operation Protective Edge, (a defensive military operation in response to Hamas
firing rockets from Gaza into Israel in the summer of 2014), which took place in
July and August of 2014. In 2015, the business sector output grew by 2.7%, lower
than the 2014 figure. In the fourth quarter of 2015, the growth rate accelerated,
and the relatively high growth rates continued in 2016, as the business sector
GDP grew by 4.3%. In 2017, the business sector GDP grew at 3.4%, a similar
pace to the total economy.
Growth of private consumption increased in 2017 as compared to 2016, with total
private consumption reaching 697 in 2017, 675 in 2016, 636 in 2015 and 612 in
2014 (in billions of NIS at constant 2015 prices). Annual growth in private
consumption, which was 4.6% during 2013-2016, was 3.4% in 2017, similar to
the annual GDP growth rate which stood at 3.5%. During 2013 to 2016, growth in
fixed capital formation was volatile and, after stagnation in 2014-2015, it rose to
11.9% in 2016, mainly due to a sharp increase in the number of purchases of
passenger cars. In 2017 gross fixed capital formation increased by 2.8%.
B.48
Public finance and
Balance of Payments and Foreign Trade
trade.
Israel had a current account surplus of 1.2% of GDP in the first 3 quarters of
2018 (on a non-seasonally adjusted basis) following a surplus of 2.9% of GDP
in 2017. This surplus follows fifteen years of a positive surplus in the current
account.
Israel is a party to free trade agreements with its major trading partners and it is
one of the few nations that has signed free trade agreements with both the United
States and the European Union (the "EU").

Israeli net exports decreased from a peak surplus of $9.6 billion in 2015 to a
surplus of $5.9 billion in 2016, which remained stable in 2017. In the first three
quarters of 2018, both imports and exports (seasonally adjusted) grew
significantly. Even with slightly higher growth in total imports as compared to

0032521-0000059 ICM:31765990.7
7

SECTION B THE ISSUER
exports, the total value of exports remained slightly higher than imports (by
$262.3 million, seasonally adjusted).
Focusing on trade in goods, in 2018 (January to November), 32.5% of Israel's
goods exports (excluding aircraft, ships and diamonds, and using seasonally
adjusted data) were to the EU (slightly down from 34.2% in 2017 and higher than
29.1% in 2016), 23.2% were to the United States (down from 24.3% in 2017 and
26.1% in 2016), 22.0% were to Asia (up from 18.4% in 2017 and similar to
2016), and 22.3% were to other markets (down from 23.1% in 2017 and 22.8% in
2016). Of Israel's goods imports (excluding aircraft, ships and diamonds) in 2018
(January to November), 43.2% came from the EU (up from 42.8% in 2017 and
down from 43.6% in 2016), 24.1% came from Asia (down from 25.7% in 2017
and 2016), 11.8% came from the United States (up from 11.1% in 2017 and
down from 12.1% in 2016), and 20.8% came from other countries (up from
20.3% in 2017 and 18.6% in 2016).
Fiscal Policy
The budget and economic plan proposal for the fiscal years 2017 and 2018 was
approved by the Knesset on 22 December 2016 and for the fiscal year 2019 was
approved by the Knesset on 15 March 2018. In the approved budget for fiscal
years 2017 and 2018 and in the approved budget for the fiscal year 2019 the
deficit target was set to 2.9% of GDP.
The deficit for 2017 stood at 1.9% and the deficit for 2018 is expected to be at or
slightly above the deficit target. Since 1995, the deficit has exceeded 4% only in
2003 and 2009, and in the four years (2014-2017) the deficit has been below 3%.
In 2017, the Government continued its debt-reduction policy, reducing
government debt as a percent of GDP by 1.6% compared to 2016, to a level of
58.8% for 2017. Public debt (including local authorities' debt) as a percent of
GDP also continued its declining path, falling to a level of 60.5% at the end of
2017, a decline of 1.6% relative to 2016. For 2018, the debt as a percentage of
GDP is expected to have slightly risen as compared to 2017, but to have declined
as compared to 2016.
As a result of the Government's fiscal discipline, Israel's total gross public debt as
a percentage of GDP has been on a declining path in the last decade. Israel's gross
public debt as a percentage of GDP stood at 60.5% in 2017, 62.1% in 2016,
63.7% in 2015, 65.8% in 2014 and 67.1% in 2013.
Inflation and Monetary Policy
Measured at year end, the consumer price index ("CPI") increased by 0.4% in
2017 and by 1.2% between November 2017 and November 2018, as compared to
a decrease by 0.2% in 2016, 1.0% in 2015 and by 0.2% in 2014. The changes in
the CPI reflect a rise in the prices of commodities, housing and agricultural
products. In order to support further growth, the Bank of Israel has lowered its
interest rate, most recently to 0.10% in March 2015; the key interest rate
remained at that level until December 2018 when it was increased to 0.25%.
Over the past five years (measured from 31 December 2013 to 31 December
2018), the NIS/USD exchange rate has averaged 3.700, fluctuating between a
high of 4.053 (recorded on 20 March 2015) and a low of 3.388 (recorded on 26
January 2018). The current exchange rate (3.748 as of 31 December 2018) is thus
slightly above the five-year average but reflects a depreciation of the NIS since

0032521-0000059 ICM:31765990.7
8

SECTION B THE ISSUER
the beginning of 2018.

SECTION C THE NOTES
C.1
Type and class of
Issuance in Series: Notes will be issued in Series. Each Series may comprise one
the Notes.
or more Tranches issued on different issue dates. The Notes of each Series will
all be subject to identical terms, except for the issue dates, interest
commencement dates and/or issue prices of the respective Tranches.
Forms of Notes: Notes may be issued in either bearer or registered form.
Registered Notes will not be exchangeable for Bearer Notes and vice versa. Each
Tranche of Notes will initially be represented by one or more global Notes,
which will be deposited with a common depositary for Euroclear and
Clearstream, Luxembourg. Except in circumstances described in each global
Note, investors will not be entitled to receive Notes in definitive form.

Notes issued in bearer form will initially be represented by a temporary global
Note or a permanent global Note. Interests in each temporary global Note will be
exchanged for either interests in a permanent global Note or for Definitive Notes,
in either case not earlier than the later of (i) 40 days after the applicable Issue
Date and (ii) 40 days after completion of distribution of the relevant Tranche
upon certification of non-U.S. beneficial ownership as required by U.S. Treasury
regulations. If U.S. Treasury Regulation §.1.163.5(c)(2)(i)(D) ("TEFRA D") is
applicable to a Series of Notes, certification as to non-U.S. beneficial ownership
will be a condition precedent to any exchange of an interest in the temporary
global Note or receipt of any payment of interest in respect of the temporary
global Note. Each permanent global Note will be exchangeable for Definitive
Notes in accordance with its terms. Definitive Notes in bearer form will, if
interest-bearing, have Coupons and, if on exchange into definitive form more
than 27 Coupon payments are left, a Talon for further Coupons attached.
Notes issued in registered form will initially be represented by a global Note in
registered form which will be registered in the name of the nominee for the
Common Depository of Euroclear and Clearstream, Luxembourg, as specified in
the applicable Final Terms. A global Note in registered form will be
exchangeable in whole but not in part for registered Notes in definitive form
without receipts, interest coupons or talons attached in accordance, in accordance
with its terms.
Notes will be represented on issue by a global Note in registered form registered
in the name of a nominee for a common depositary for Euroclear and
Clearstream, Luxembourg. The registered global Notes will be exchangeable for
Definitive registered Notes in accordance with its terms.
Security Identification Number(s): The Notes have been accepted for clearance
through Euroclear and Clearstream, Luxembourg (which are the entities in
charge of keeping the records). Each Tranche of Notes will be allocated an
International Securities Identification Number (ISIN), Common Code, and may
be allocated a Classification of Financial Instrument (CFI) code and Financial
Instrument Short Name (FISN). Notes issued in Series comprising more than one
Tranche may be assigned a temporary ISIN and Common Code on issue.
The Notes have the ISIN XS1936101291, the Common Code 193610129, the
CFI Code DTFXFR and the FISN STATE OF ISRAEL/1EMTN 20490118.

0032521-0000059 ICM:31765990.7
9

SECTION C THE NOTES
C.2
Currencies.
Currencies: Notes will be issued in such currencies as may be agreed between
the Issuer and the relevant Dealer(s), subject to any applicable legal or regulatory
restrictions or requirements.
The Specified Currency of the Notes is Euro ("EUR").
Denominations: Notes will be issued in such denominations as may be agreed
between the Issuer and the relevant Dealer(s), provided that no Notes may be
issued under the Programme which have a minimum denomination of less than
1,000 (or nearly equivalent in another currency) and subject to compliance with
all applicable legal and/or regulatory and/or central bank requirements applicable
to the relevant Specified Currency.
Where Notes have a maturity of less than one year and either (a) the issue
proceeds are received by the Issuer in the United Kingdom or (b) the activity of
issuing the Notes is carried on from an establishment maintained by the Issuer in
the United Kingdom, such Notes must (a) have a minimum denomination of
£100,000 (or its equivalent in other currencies) and be issued only to persons
whose ordinary activities involve them in acquiring, holding, managing or
disposing of investments (as principal or agent) for the purposes of their
businesses; or who it is reasonable to expect will acquire, hold, manage or
dispose of investments (as principal or agent) for the purposes of their businesses
or (b) be issued in other circumstances which do not constitute a contravention of
section 19 of the FSMA by the Issuer.
Where any global Note is exchangeable for a definitive Note other than in the
limited circumstances specified in the relevant global Note, such Notes shall be
tradeable only in principal amounts of at least the Specified Denomination (or if
more than one Specified Denomination, the lowest Specified Denomination).
The Notes are issued in denomination(s) of EUR 1,000.
C.5
Restrictions on free
Each Dealer has agreed and each further Dealer appointed under the Programme
transferability of
will be required to agree that it will comply with all applicable securities laws
the Notes.
and regulations in force in any jurisdiction in which it purchases, offers, sells or
delivers Notes or possesses or distributes the Base Prospectus and will obtain any
consent, approval or permission required by it for the purchase, offer, sale or
delivery by it of Notes under the laws and regulations in force in any jurisdiction
to which it is subject or in which it makes such purchases, offers, sales or
deliveries and neither the Issuer nor any other Dealer shall have any
responsibility therefor.
C.8
Ranking
of
the
Status of the Notes: The Notes will constitute direct, unconditional and
Notes, rights of the
unsecured obligations of the Issuer and will rank pari passu, without preference
Notes
and
any
among themselves, with all other unsecured External Indebtedness of the Issuer,
limitations to those
from time to time outstanding, provided further that the Issuer shall have no
rights.
obligation to effect equal or rateable payment(s) at any time with respect to any
such other External Indebtedness and, in particular, shall have no obligation to
pay other External Indebtedness at the same time or as a condition of paying
sums due on the Notes and vice versa.
"External Indebtedness" means any Indebtedness which is payable by its terms
or at the option of its holder in any currency other than the currency of Israel and
"Indebtedness" means all obligations of the Issuer in respect of borrowed money
and guarantees given by the Issuer in respect of money borrowed by others.

0032521-0000059 ICM:31765990.7
10