[BANK LEUMI]

Bank Leumi le-Israel B.M. exp BBB-/BBB (s/s) (issuer ratings Baa1/BBB+/A- (s/s/s)) US$1bn 144A/Reg S 10.25NC5.25 Tier 2 subordinated fixed rate reset notes due 09/09/36. Optional redemption at par from 06/09/31 to 09/09/31. Redeemable at par upon a Regulatory or Tax Event, subject to regulatory approval. First pay 09/09/26 (short first coupon). Coupon resets 09/09/31 to UST + margin. MIFID II/UK MIFIR professionals/ECPs only; no PRIIPs KID; no sales to retail in EEA/UK. Denoms: 200,000 x 1,000. UOP: To support business growth, refinance subordinated debt, manage capital FX exposure and for other general corporate purposes. Listing: Tel Aviv Stock Exchange (TASE-UP). Governing Law: New York, except subordination/set-off provisions governed by Israeli law. Investor Presentation: https://www.netroadshow.com/nrs/home/#!/?show=7a2c944c (Entry Code: Leumi26). Pricing 06/02. Settle 06/09/26. ISIN: IL0012416785.

VIA GS (B&D) as Global Coordinator. BofA/Citi/DB/GS/JPM/MS joint bookrunners. Barak Leumi Underwriters Ltd. as Local Distributor.

Announced with benchmark size, we heard initial price thoughts as T+185 area.

Went straight to launch at $1bn T+155bp. 

The $1bn deal priced as follows:

$1bn 5.742% 9/9/36 nc 31 5.742% 100.00. back end +155

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

Bank Leumi 144A/Reg S (Cat 2) Tier 2 sub unsec notes (BBB/BBB)
- LUMIIT 7.129% due 7/18/33 (nc 28) $103.097 bid (T+132.8/G135; 5.367% YTC) - $500m pxd Jan 2023 back end +345 vs T 3.875% 12/31/27

** Outstanding Jul 33nc28 at G135; add in 15bp for 7s/10s curve gets to T+150bp f/v. One EM account said the spread set was too close to fair value for them to participate. 

At the T+155bp pricing level, CONCESSION IS 5BP.

Sov:

The State of Israel (ISRAEL) exp A1/AA-/A+ (p/s/s)
-ISRAEL 5.000% due 1/13/36 $97.544 bid (T+86; G88; 5.309 YTW) - $2B pxd 1/13/26 +100

We heard the books were over $2.5bn.