Amid its war in Gaza, Israel has raised an unprecedented $5 billion through its U.S.-based bond broker, Israel Bonds, with significant backing from American local governments and institutions, Bloomberg reported on June 6.

Since the Hamas-led October 7 attacks, Israel Bonds has more than doubled its usual fundraising pace. The broker, affiliated with Israel’s Ministry of Finance, facilitates direct investments into Israeli sovereign debt, which helps sustain military and social expenditures.

“This $5 billion isn’t just capital,” said Dani Naveh, CEO of Israel Bonds. “It is a global vote of confidence in the Israeli economy.”

Who’s Buying the Bonds?

The largest investors are U.S. state, county, and city governments. Palm Beach County alone holds $700 million in Israeli bonds. Other prominent buyers include New York, Texas, Ohio, and Illinois. Yields currently range between 4.86% and 5.44% for five-year bonds, which are marketed under names like “Mazel Tov” and “Maccabee.”

Naveh emphasized the appeal is both financial and political: “It’s a bipartisan approach.”

War Costs Strain Public Finances

Israel’s public debt surged last year, with a record borrowing of 278.4 billion shekels (approx. $75.9 billion). The Finance Ministry projects a borrowing need of 200 billion shekels for 2025. Most of Israel’s borrowing is domestic, but international and diaspora bond sales now play an expanding role.

No Secondary Market, But Steady Returns

Israel Bonds differ from typical government securities. They’re non-tradeable and designed for long-term holding. Despite limited liquidity, their appeal has grown amid the war, driven by geopolitical solidarity and competitive returns.