Central Bank of Ireland to Stop Approving Israeli Bond Prospectus
The Central Bank of Ireland will cease approving a specific prospectus for Israeli bonds on september 2nd, 2025. This decision stems from a transfer of responsibility for approving the bonds to Luxembourg, as confirmed in a letter from Central Bank official Makhlouf.The 2024 prospectus, approved by the Irish Central bank, expires on September 1st, 2025, after which the State of Israel will no longer be able to offer bonds under its terms. However, Luxembourg’s financial authorities have already approved a new 2025 prospectus for Israel, effective September 2nd, 2025, allowing bond offerings to continue under the new documentation.
The Central Bank of Ireland has maintained that it is legally obligated to approve prospectuses that meet all required EU regulations. Israel previously had its European bond prospectuses approved in the UK, but shifted to the Irish Central Bank following brexit.
The approved documentation for Israel’s European bond program,last updated in September 2023,states that proceeds will be used for “general financing purposes” of the state. However, the Growth Company for israel (International) Ltd, which manages the debt sales, has been actively marketing the bonds with messaging referencing the need for funds to support the conflict in Gaza.
The decision has drawn varied reactions from Irish political figures and advocacy groups. The Ireland-Palestine Solidarity Campaign hailed the move as ”a huge victory,” while Sinn Féin leader Mary Lou McDonald criticized the Central Bank for previously facilitating bond sales she characterized as funding “the genocide of the palestinian people.” Independent presidential candidate Catherine Connolly called for further action, including full adoption of the Occupied Territories Bill and stronger advocacy at EU and United Nations levels.
Other TDs,including Paul Murphy of People Before Profit and gary Gannon of the Social Democrats,also welcomed the development,though Gannon expressed disappointment that Luxembourg would continue to facilitate the bond sales.