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Israel Securities Authority
27.01.2008
Finance Minister has approved ISA proposal permitting
the European Investment Bank to issue securities in Israel
without publishing a prospectus
The amendment proposed by the ISA, to permit the issue of the EIB securities in
Israel, was recently approved by the Finance Minister, Mr. Roni Bar-On. It is similar
to the agreement approved under the Securities Law (effective March 2005) regarding
the issue of special securities in Israel, by the World Bank. Owing to the European
Investment Bank's particular characteristics, the approved amendment permits the
offer of EIB's securities without issuing a prospectus approved by the ISA.
The European Investment Bank (the Banque Européenne d'Investissement) is the
European Union's financing institution established under the Treaty of Rome (1957) to
provide financing for capital investment furthering European Union policy objectives,
in particular regional development, Trans-European Networks of transport,
telecommunications and energy, research, development and innovation, environmental
improvement and protection, health and education. Outside the Union the EIB
implements the financial components of various agreements concluded under
European development aid and cooperation policies. The bank's Mediterranean branch
FEMIP (Facility For European-Mediterranean Investment and Partnership) has
already invested in Israel and announced its intention to further expand the aforesaid
investments.
The current amendment is another step in Israel's continuous association with the
European Bank under the framework agreement regulating the Bank's activities in
Israel. The agreement, signed in June 2000 and approved by the Government of Israel
at the end of 2006, stipulates that: "The Bank will enjoy the most favored status
granted to any international institution in relation to its activity in Israel, or as regards
its investments, protection of investments and provision of financial services,
accordingly." Furthermore, Bank of Israel is currently working on a new legislation
authorizing, inter alia, investment of Israel's foreign currency reserves in bonds issued
by the European Bank. The framework agreement proposes an amendment authorizing
the offer of the EB bonds in Israel and stipulating special taxation regulations
pertaining to the bank.
According to the proposed amendment the EB can offer securities, including by way
of trade registration on the stock exchange, that do not impart voting rights or
membership in the bank and which are not realizable or convertible into securities
imparting the aforesaid rights, without publishing a prospectus and companies' without
publishing current financial statements, required from reporting corporation under the
Israeli law. According to the proposed agreement the EB will be permitted to offer
securities to Israeli investors on the basis of a public offer instrument, and will be
required to submit regular reports to the ISA and the stock exchange under the special
arrangement.
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95464 ‫ ירושלים‬,22 ‫רח' כנפי נשרים‬
02-6513646 :‫ פקס‬,02-6556555 :‫טלפון‬