Torsella increases Pennsylvania’s Israel Bond holdings to $44 million total
Harrisburg, PA – Pennsylvania Treasurer Joe Torsella today announced that he has increased Pennsylvania’s Israel Bond holdings by authorizing the allocation of additional funds to be combined with the reinvestment of matured bonds. The investment builds on previous holdings Torsella authorized last year.
“As Treasurer, one of my responsibilities is to protect and invest the hard-earned money of Pennsylvanians that has been entrusted in our care. This investment helps fulfill that mission, by furthering a commitment to the State of Israel that, in an era of low interest rates, will earn Pennsylvanians a solid return for a very-low risk. It’s an investment that makes sense for Pennsylvania, and one I’m proud to make.”
Pennsylvania Treasurer, Joe Torsella
Treasury’s has increased Pennsylvania’s Israel Bond portfolio by 10 percent by reinvesting $7.5 million of matured bonds and adding $4 million to the allocation. The $11.5 million in three-year bonds purchased on June 1 had a weighted average yield of 3.52 percent. The move will bring the Commonwealth’s total investment to $44 million with a yield of 2.60 percent.
Pennsylvania is one of over 90 state and municipal public employee pension and treasury funds who have invested more than $3 billion in Israel Bonds as part of their investment strategy.
Israel Bonds, officially known as Development Corp. for Israel, was established in 1951 to underwrite securities issued by Israel’s Ministry of Finance. Since the country’s inception in 1951, it has never missed a payment on principle or interest.