JERUSALEM: Israel sold $5 billion of five- and 10-year bonds in an international debt offering overnight, the finance ministry said on Wednesday, the country's second such issue since war broke out 16 months ago.

Overcoming downgrades from all three major credit rating agencies in 2024, Israel sold $2.5 billion of five-year bonds at 120 basis points over comparable U.S. Treasuries yields and another $2.5 billion of 10-year bonds at 135 basis points over U.S. Treasuries.

Demand reached $23 billion and some 300 different investors from more than 30 countries worldwide took part in the sale, including major institutional investors such as pension funds, insurance companies, hedge funds and entities holding long-term Israeli government bonds, the ministry said.

Accountant General Yali Rothenberg said the offering reflected Israel's financial stability and the "the high level of confidence that global investors have in the Israeli economy, even during times of global, security, and local challenges."

"The spreads in this issuance indicate a significant reduction in Israel’s risk premium," he added. (Reporting by Steven Scheer Editing by Christina Fincher)