Mekorot Raises 1.75 Billion Shekels in Bond Sale After Heavy Demand

Mekorot, Israel’s national water company, completed the institutional stage of an expansion of Series 11 bonds after attracting about 3 billion shekels in orders, roughly three times the original target of around 1 billion shekels. In response to the oversubscription, the company increased the planned fundraising to 1.75 billion shekels, subject to approval from the rating agency.

This is Mekorot’s first debt raise in 2026. The proceeds will help finance its investment program in the water sector, including connecting remote areas such as the Golan Heights, the Jordan Valley and the Arava, as well as linking new desalination plants expected to come online in the coming years.

The bonds offered to investors are CPI-linked, with an average duration of about 11.4 years and principal repayment through 2053. The series is rated AAA with a stable outlook by S&P Maalot. The institutional stage closed at a price implying an annual real yield of about 2.75 percent and a spread of around 77 basis points over a comparable government bond.

Chairman Moshe Shimoni said, “The fundraising will allow the company to continue implementing its investment plan for developing the water sector, including expanding transmission and supply infrastructure and connecting areas that are not yet fully linked to the national system.” Mekorot, led by Danny Sopher, has increasingly financed much of its development plan through the capital markets in recent years as demand for water rises and supply infrastructure expands across Israel.