On February 7, Ohio's Treasurer Robert Sprague unveiled a significant financial move by acquiring $35 million in two-year fixed-rate Israel Bonds. This strategic investment not only enhances the state’s portfolio but also underscores Ohio's commitment to supporting Israel's economic stability. The bonds, maturing on February 1, 2027, carry an interest rate of 4.78%, replacing a similar amount from previously matured securities. Sprague emphasized the importance of this investment, highlighting its historical significance and reliable returns for the Ohio Treasury. Ohio now holds a total of $262.5 million in Israel Bonds, positioning it as one of the largest government investors in these securities within the United States. Key figures praised this decision, affirming the high quality and resilience of Israel Bonds.
The acquisition of these bonds is part of a long-standing tradition in Ohio. For decades, the state has consistently invested in Israel Bonds, recognizing their competitive rates and dependable repayments. Robert Sprague, who was recently recognized as a Difference Maker by the Columbus Jewish News, reiterated that this practice bolsters Ohio’s investment portfolio. He highlighted the bond's proven track record of delivering solid returns. Rabbi Rosette Barron Haim, general chair of the Israel Bonds Cleveland advisory council, expressed gratitude towards Ohio's leadership and confidence in these bonds. Similarly, Jay Schottenstein, general chair of Israel Bonds Central Ohio, echoed the sentiment, emphasizing the high-quality nature of the investment.
Israel Bonds have been instrumental in supporting the country's economic development since their inception in 1951. Despite facing numerous challenges, Israel has maintained a flawless record of repaying both interest and principal. Nathan Miller, a spokesperson for Israel Bonds, noted the robust demand for these securities worldwide, attributing it to Israel's sophisticated capital market, strong economy, and stable financial system. Even during periods of conflict, Israel has never defaulted on its obligations. Yali Rothenberg, Israel’s Accountant General, affirmed that the country's ability to raise debt reflects its economic strength and international market support.
Since 1993, every Ohio Treasurer has continued this tradition of investing in Israel Bonds, joining over 115 other state and municipal public employee pension and treasury funds. This ongoing commitment highlights the mutual trust and partnership between Ohio and Israel. Development Corporation for Israel, commonly known as Israel Bonds, acts as a broker-dealer underwriting securities issued by the State of Israel in the U.S. This latest purchase reinforces the enduring relationship and shared economic interests between the two entities.
The investment decision by Ohio’s Treasurer signifies more than just a financial transaction. It symbolizes a steadfast alliance built on trust and reliability. By continuing this tradition, Ohio reaffirms its belief in Israel's economic resilience and the mutual benefits derived from such investments. This move sets a positive example for other states and institutions considering similar opportunities in the future.
