Israel’s national water company, Mekorot, said it successfully completed the institutional stage of a bond offering last week, with demand reaching about 3 billion shekels, roughly three times the 1 billion shekels it initially sought. The company ultimately set the fundraising volume at about 1.75 billion shekels, pending rating agency approval.
This is Mekorot’s first capital raise of 2026. As in previous rounds, the money is meant to finance the water system over the coming year, including connecting disconnected areas such as the Golan Heights, the Jordan Valley and the Arava region, as well as linking major desalination plants expected to be built in the coming years.
Mekorot said rising water demand and population needs require continued investment to ensure stable, high-quality supply across all sectors. The company, led by Danny Sofer, also said the Energy Ministry expressed full support to the rating agency for Mekorot, its management and the continuation of its operations, while stressing the importance of preserving the company’s financial strength.
The offering included inflation-linked bonds with a long average maturity of about 11.4 years, and principal repayment will be made in equal installments, except for the final one, through 2053. The bonds carry an il.AAA rating with a stable outlook from S&P Maalot. Because demand was so strong, the institutional stage closed at a price of 1.113 agorot per face-value unit, implying an annual indexed yield of about 2.75% and a spread of about 77 basis points over a comparable Israeli government bond. Mekorot chairman Moshe Shimoni said the demand reflected “confidence in the company’s activities.”
