The State of Israel is planning to bring its first euro deal in around three years, having mandated banks for a trade that could emerge as early as next Wednesday. The issuer has appointed Bank of America Merrill Lynch, Barclays and Citigroup to organise investor meetings in the UK and Europe starting January 9, according to a lead.

The sovereign will visit Germany and France next Monday, followed by the Netherlands and London on Tuesday, with a 10-year benchmark expected to follow. Israel could also consider a longer-dated tranche, subject to demand.

"They do these exercises as benchmarking and credit marking as opposed to strictly funding," said a lead banker. "If there is a good level of interest beyond 10-years, they might look at it."

Copyright Reuters, 2017