Luxembourg lets Israel bond prospectus expire, leaving EU borrowing uncertain

Luxembourg's financial regulator, the CSSF, decided in May not to renew approval for the Israel bond prospectus beyond its August 31 expiry date. This means Israel can no longer issue bonds in the EU market unless another EU country takes over the prospectus approval. The decision follows similar action by Ireland, which previously served as the regulatory home for Israeli bonds. Israel has raised significant funds through these bonds, including $4.5 billion between October 2023 and January 2025, according to Amnesty International. The move comes amid ongoing criticism of Israel's military actions in Gaza and other territories, with human rights groups urging EU states to stop facilitating such bonds. Israel still has access to other markets, notably the US, where it raises about $2.5 billion annually.