Only days after Palm Beach County, Florida, upped its investments in Israel bonds, states, cities and counties around the nation have joined in, bringing the total investments to more than $150 million.
New York, Illinois, Pennsylvania, Texas, Ohio, Arizona and Georgia have joined Florida, Miami-Dade and Palm Beach counties and the city of Miami Beach in supporting Israel not only with words, but with deeds, in the wake of the deadly terror attacks by Hamas on Oct. 7.
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The Development Corporation for Israel/Israel Bonds and its affiliates around the world said they have secured more than $200 million in bond sales and commitments from investors since the war broke out. The lion’s share — $150 million in bond purchases — came from U.S. states, local municipal governments and a financial services firm, Cross River in New Jersey.
Miami Beach Mayor Dan Gelber told The Bond Buyer on Monday the city would be doubling its $10 million investment in Israel bonds to about $20 million, and already purchased about $2 million last week.
He pointed out the city’s support for Israel is not new.
“I’ve done this before where I’ve asked the city to up its Israeli bond commitment because while I think it’s important to speak out, it’s also important to do something,” he said.
“Jews have been scapegoats by people who hate us for a long time. So while there’s hope that it will be better in the future, we have to assume that the hate’s not going to be going away,” he said. “And anti-Semitism certainly isn’t, so you have to respond. You have to let people know we’re not cowering and we’re not afraid.”
Gelber has been reaching out to other mayors reminding them that local action in the face of terrorism can make a difference.
“Making capital available to Israel is really important now, so I hope other mayors do this,” he said.
Gelber noted that Miami Mayor Francis Suarez was able to get the city commission to approve a resolution to allow the purchase of Israel bonds, which is likely to culminate in a sizable bond buy.
“Purchasing Israel bonds is more than a strong investment due to Israel’s excellent economic status and its business ecosystem,” Maor Elbaz-Starinsky, Consul General of Israel in Miami, told The Bond Buyer. “It also sends a message of trust in Israel’s economy, in our shared values, and in the special relationship of the U.S. with the Jewish state.”
He noted steadfast support was key.
“These days, such an investment also embodies solidarity and serves as a crucial tool to ensure the continuation of the building and development of every sector of Israel’s economy and society — even during this time of war,” Elbaz-Starinsky said.
Business leaders and officials were gratified by the support from across the nation.
“The continued surge of investments in Israel bonds since the onset of the war represents an unmistakable affirmation that the American people stand with Israel during this crucial time and that they are committed to supporting the Jewish state in the most powerful and direct possible way,” Dani Naveh, president and CEO of the Development Corporation for Israel/Israel Bonds, told The Bond Buyer, “We anticipate that this momentum will persist.”
Miami-Dade County will also be boosting its investment in Israel bonds, Mayor Daniella Levine Cava said Tuesday. The county will purchase an additional $25 million in Israeli bonds, bringing its total investment to $76 million.
“I’m heartbroken for all those who have lost loved ones to these horrific acts of terror and senseless violence and for the families of all the Americans killed and those confirmed to be captured,” Levine Cava said. “I am proud to make this additional investment in Israel bonds, as we send a clear message that Miami-Dade stands together with Israel and all nations that champion democracy.”
The Miami-Dade County Board of County Commissioners also passed a resolution supporting Israel.
“I thank Mayor Levine Cava and my County Commission colleagues for their unwavering support of Israel and her right to defend herself against terrorism,” County Commissioner Micky Steinberg said. “Our community and Israel have deep cultural ties and we are proud to stand with the people of Israel by deepening our county’s investment.”
About 1,400 Israelis have been killed and 99 hostages are known to have been taken in the violence initiated by Hamas, which is designated a terrorist organization by the U.S. and E.U. Retaliatory strikes on Gaza by Israeli forces have left more than 2,600 Palestinians dead, CNN reported.
President Joe Biden will address the nation at 8 p.m., ET, Thursday, “to discuss our response to Hamas’ terrorist attacks against Israel and Russia’s ongoing brutal war against Ukraine,” the White House said.
In New York, the state’s Common Retirement Fund bought an additional $20 million of Israel bonds, according to state Comptroller Thomas DiNapoli. The purchase brings the state pension fund’s holdings in Israeli bonds to $267.8 million.
“New York State’s pension fund buys Israel bonds because we have confidence in the spirit of innovation and tenacity of Israeli people and in the strength of our investments there,” DiNapoli said on Friday.
“In addition to providing a steady return for our pension fund’s members, Israel bonds help support one of our nation’s strongest allies,” he said. “I am heartened that so many other public funds have stepped forward to purchase bonds and support Israel, the only democratic government in the region, during these tragic and challenging days.”
Georgia Gov. Brian Kemp said Friday he instructed state Treasurer Steve McCoy to buy $10 million in bonds from Israel in a continued show of support for the country.
The investment brings Georgia’s total investment in Israel bonds to $25 million. Since Kemp took office in 2019, Georgia has purchased $50 million in bonds, with half of the bonds now matured.
“Israel is one of Georgia’s strongest allies and greatest friends, and our support for its people as they endure horrific attacks from terrorists is unwavering,” Kemp said. “Purchasing these bonds is just the latest expression of that support.”
Illinois State Treasurer Michael Frerichs said his office will invest an additional $10 million in Israel.
“This investment shows our strong commitment to Israel and its people,” Frerichs said. Since he became treasurer in 2015, his office has invested in Israel bonds and the state’s investment in Israel now exceeds $100 million.
Frerichs said the state has bought Israeli bond to diversify its portfolio, achieve stable returns from a strong investment and to draw attention to a global partnership between the state’s economy and Israel.
In Pennsylvania, Treasurer Stacy Garrity said Friday the state Treasury Department was investing an additional $20 million in Israel bonds.
“Israel bonds are a smart, dependable investment with a proven track record,” he said. “It’s especially important to show our support at a time when the people of Israel are facing horrific terrorism. I’m proud to announce this significant new investment, continuing the strong relationship between Pennsylvania and Israel.”
The state currently holds almost $36 million worth of Israel bonds and the new investment will bring the total to about $56 million. The state has invested in Israel bonds for more than 30 years.
In Texas, state comptroller Glenn Hegar last week announced the purchase of $20 million in Israel bonds. The fixed-rate bonds mature in five years and carry an interest rate of 5.74%.
Each year since 1994 Texas has invested in Israel bonds and after the latest purchase will hold nearly $100 million in outstanding Israel bonds. Since Hegar took office in 2015, Texas has purchased $140 million in Israel bonds.
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Israel bonds were first sold in 1951 and have maintained an impeccable record of interest and principal payments.
“The state of Israel is a solid investment,” Hegar said. “For nearly 30 years, Israel bonds have been a key component of our investment portfolio at the state’s treasury, providing a reliable return for the people of Texas. As a Texas taxpayer, I am proud to support our ally, and as your comptroller, I am confident this is a prudent financial decision for the state of Texas.”
In Ohio, Treasurer Robert Sprague said last week he plans to buy $20 million of five-year, fixed-rate Israel bonds. The bonds are due on Oct. 1, 2028, with an interest rate of 5.74%.
“For 30 years, Israel bonds have been — and continue to be — a strong investment for the Ohio Treasury,” Sprague said. “We’re proud to make this $20 million purchase and provide desperately needed liquidity to Israel as they fight against these heinous acts of terrorism.”
Since 1993, every Ohio Treasurer has invested in Israel bonds and with the upcoming purchase, the Treasury will hold $187.5 million. Since Sprague took office in 2019, the state’s total purchases amount to $227.5 million.
Arizona State Treasurer Kimberly Yee said the state will be purchasing Israel bonds in a show of support.
“The Israeli government will be issuing new bonds and Arizona has been placed at the forefront of the list of institutional buyers,” Yee said. “As soon as these bonds are accessible, the Arizona state treasurer’s office is committed to increasing its holdings.”
The treasurer’s office has been investing in Israel bonds since 2013 and currently has $15 million in holdings.
“In the wake of the distressing news of the horrific terrorist attacks in Israel, I promptly directed my investment team to contact our esteemed partners in Israel to increase our Israel bond holdings as we continue to stand firmly with Israel,” Yee said.
Last Monday, Palm Beach County Comptroller Joseph Abruzzo directed that $25 million from the county’s investment portfolio be invested in Israel bonds following the attack by Hamas.
Subsequently, Jimmy Patronis, the state’s chief financial officer, said Wednesday the Florida Treasury would follow Palm Beach’s lead and also invest $25 million in Israel bonds.
“The message from the American people to our brothers and sisters in Israel is that you are remarkable. Stand strong, and you will never be alone,” said Howard Goldstein, chairman of the Israel Bonds’ national board of directors.
“Israel Bonds has proved once again that it is a crucial component of Israel’s financial well-being. Am Yisrael Chai,” he said.