[MIZRAHI-TEFAHOT BANK]

Mizrahi-Tefahot Bank Ltd (MZRHIT), exp issue ratings BBB-/BBB by S&P/Fitch (issuer ratings BBB+/A- by S&P/Fitch), US$750m 144A/Reg S (Cat 2) 10.25nc5.25 fixed rate reset Tier 2 subordinated notes due 4/15/36. Reset Date: 4/15/31. GS (B&D)/HSBC/Jefferies as JGCs/JBRs. Interest: Fixed rate, payable semi-annually in arrear at [•]% per annum from the Issue Date to the Reset Date. From and including the Reset Date to (but excluding) the Maturity Date, the sum of the US Treasury Rate determined on the Reset Determination Date and [•] bps. Optional Redemption: Redeemable at the option of the Issuer, in whole but not in part, at par at any time during the period commencing on (and including) 15 January 2031 (three months before the Reset Date) and ending on (and including) the Reset Date, subject to certain conditions including regulatory approval, if then required. Special Event Redemption: redeemable at the option of the Issuer, in whole but not in part, at par upon occurrence of a Regulatory Event or a Tax Event, subject to certain conditions including regulatory approval, if then required. UOP: gcp. Pricing 1/8. Settle 1/15. 

VIA GS (B&D)/HSBC/Jefferies as JGCs/JBRs

Announced with benchmark size, we heard initial thoughts as T+240a.

Guidance came in at T+210#.

Ultimately a $750m deal priced as follows:

$750m 5.839% 4/15/36 100.00 5.839% T+210. 

As for r/v, today’s deal marks back-to-back days with deals from Israeli banks. Israel’s Bank Hapoalim priced on Wednesday.  Before that, the last deal from an Israeli Bank was a trade from Israel Discount Bank priced in Jan 2023 ($800m IDBILI 5.375% due 01/26/28).

MZRHIT priced a 10nc5 on 3/14/21 – the MZRHIT 3.077% due 04/07/31 (nc 26).  The dall date makes this a no go for a NIC calculation. 

As such, comps away were the main focus:

Bank Leumi Le-Israel (BBB-/BBB-)
- LUMIIT 7.129% due 07/18/33 (nc 28) T+160bp (G158; $104.33) - $500m pxd JAN 2023

First Abu Dhabi Bank PJS (A by Fitch)
-FABUH 5.804% due 01/16/35 (nc 29) T+138bp (G133; $102.80) - $750m pxd JUL 2024

Abu Dhabi Commercial Bank (A- by Fitch)
- ADCBUH 5.361% due 03/10/35 (nc 29) T+132bp (G126; $101.62) - $500m pxd SEPT 2024

OTP Bank Nyrt (Ba1/BB/BB)
- OTPHB 7.300% due 07/30/35 (nc 30) T+215bp (G223; $105.07) - $750m pxd JAN 2025

SNB Funding Ltd (BBB/BBB+)
- SNBAB 6.000% due 06/24/35 (nc 30) T+155bp (G160; $102.81)  $1.25bn pxd 6/17/25 +200

Bangkok Bank PLC/HK (Baa3 Moody’s)
- BBLTB 3.466% due 09/23/36 (nc 31) T+163bp (G156; $90.77) - $1.0bn pxd SEPT 2021

CONCESSION IS N/A.

FINAL BOOKS:

This book actually grew from guidance: 

$750m 10.25nc5.25 T2 Sub - $2.450bn (3.27x) - PEAK $2.300bn