Book size: 1700; Redemption: 2028-04-18; Registration: 144A/Reg S (Cat 2);

Bank Leumi Le-Israel BM (LUMIIT) exp BBB/BBB (S&P/Fitch) US$500m 144A/Reg S (CAT 2) 10.5nc5.5 subordinated Tier 2 green bond due 7/18/33. Citi (B&D / GC)/Barc/JPM/Jeff/UBS joint books. Co-mgr: LEUMI. Tax changes call, regulatory / capital disqualification call. UOP: The net proceeds of the Offering will be used for (i) supporting the Group’s business growth; (ii) refinancing of the Issuer’s existing subordinated debt; (iii) management of the Group’s capital FX exposure and/ or (iv) other general corporate purposes. The Issuer intends to allocate an amount equivalent to the net proceeds of the Notes to finance or re-finance, in whole or in part, Eligible Green Projects in accordance with the use of proceeds criteria and selection process described in the Bank’s Green Bond Framework. A Second Party Opinion has been published by S&P. The Framework is available on the Bank’s website. Pricing 1/11. Settle 1/18. IPTs: T+375 area.

[BANK LEUMI]

Bank Leumi Le-Israel BM “LUMIIT” (BBB/BBB S&P/Fitch) hit the market today with US$500m 144A/Reg S (CAT 2) 10.5nc5.5 subordinated Tier 2 green bond due 7/18/33. Tax changes call, regulatory / capital disqualification call. UOP: The net proceeds of the Offering will be used for (i) supporting the Group’s business growth; (ii) refinancing of the Issuer’s existing subordinated debt; (iii) management of the Group’s capital FX exposure and/ or (iv) other general corporate purposes. The Issuer intends to allocate an amount equivalent to the net proceeds of the Notes to finance or re-finance, in whole or in part, Eligible Green Projects in accordance with the use of proceeds criteria and selection process described in the Bank’s Green Bond Framework. A Second Party Opinion has been published by S&P. The Framework is available on the Bank’s website. Settle 1/18.

VIA Citi (B&D / GC)/Barc/JPM/Jeff/UBS joint books. Co-mgr: LEUMI.

Announced overnight with benchmark size, we heard initial thoughts as T+375a.

Guidance came in at T+350bp (+/- 5).

Ultimately, a $500m deal priced at T+345bp.

PRICED: $500m 7.129% 7/18/33 100.00 7.129% T+345. Reset spread: CT7+346.6.

As for r/v, outstanding LUMIIT was quoted as follows:

Bank Leumi 144A/Reg S (Cat 2) Tier 2 sub unsec notes (BBB/BBB)
- LUMIIT 3.275% due 1/29/31 (nc 26) $89.03 bid (T+338/G342/7.35% YTC) $750m pxd Jan 2020
**back end 5UST+163.1bp

Bank Leumi Sr Notes (A/A)
LUMIIT 5.125% due 07/27/27 T+151bp (G145; $99.71) - $500m pxd 7/20/22 +210

Working from the rolled down 31nc26 at G342, you could argue T+362 f/v. However, the difference in back end is always the kicker. The difference in back ends is pretty substantial, and we heard there was little consensus on the value. In the end, the T+345bp landing level was 17bp inside that T+362bp level prior to back-end adjustment, but this represents a different NIC to everyone based on how they valued the back end. As such, CONCESSION N/A.

The State of Israel is also a comp.

The State of Israel (ISRAEL) exp A1/AA-/A+ (p/s/s)
PRICED: $2bn 4.50% 1/17/33 99.419 4.573% T+95 (pxd 1/10/23)

When Bank Leumi priced its 11nc6 back in 2020 at T+170bp, the ISRAEL 3.25s of ’28 were quoted G61, and the ISRAEL 2.50s of ’30 were quoted G64).

Final book size was heard as $1.7bn.