Israel Bonds

Israel Bonds is the commonly known name of Development Corporation for Israel (DCI), the U.S. underwriter of debt securities (Israel bonds) issued by the government of Israel. DCI is headquartered in New York City, and is a broker-dealer and member of the Financial Industry Regulatory Authority (FINRA). Israel Maimon became the organization's president & CEO in October 2016.

The sale of Israel bonds is global in scope. In addition to the United States, bonds are sold in Canada through Canada-Israel Securities, Ltd., and Europe through Development Company for Israel (UK) Ltd. Sales have increased steadily since the initial Independence Issue was offered in 1951, with total worldwide sales approaching $40 billion. In 2013, U.S. Israel bond sales surpassed $1.12 billion, the first time domestic sales exceeded the $1 billion mark. Sales again exceeded $1 billion in 2014 and 2015.

In the fall of 2011, Israel Bonds launched an eCommerce site to facilitate investing in Israel bonds online. As of 2016, investments made via the online site have exceeded $130 million, owned by 55,000 bondholders around the world.

The idea to float bonds issued by Israel's government was conceived by Israel's first prime minister, David Ben-Gurion, in the aftermath of Israel's War of Independence. The war had taken a terrible toll in casualties (more than 1% of the country's population was killed), and the nation's fledgling economy was devastated. Compounding the dire situation was the fact that Israel faced economic demands unique to the new state, most especially the arrival of hundreds of thousands of immigrants from post World War II Europe and the Middle East.

Short on economic resources, Israel suffered food shortages and imposed rationing, and new arrivals had to be housed in primitive shelters.

With his country financially overwhelmed, Ben-Gurion turned to the Diaspora community for help. In September 1950, he convened a meeting of American Jewish leaders at Jerusalem's King David Hotel, where he proposed issuing bonds to help provide Israel with a more secure economic foundation. Ben-Gurion's goals were two-fold: to obtain millions of dollars in funding for immigrant absorption and the construction of national infrastructure, and to engage Diaspora Jewry as active partners in building the new Jewish state.

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