Bank of Jerusalem’s Securitization First
Bank of Jerusalem has completed Israel’s first-ever mortgage securitization by a domestic bank, totaling approximately NIS 500 million.
As part of the deal, the Bank of Jerusalem sold a portfolio of mortgage assets to a special purpose vehicle (SPV), Yemin Moshe 25 Bond-1 Ltd., established by an independent third party. Institutional investors financed the acquisition, backed by a complex structure that engaged the bank, global credit rating agency S&P, and leading financial and legal advisors.
The transaction earned a -AA rating from S&P and was structured in compliance with both banking and non-banking regulations. It also anticipates Israel’s forthcoming Securitization Law, which passed its first reading in the Knesset.
This milestone is expected to set a precedent for similar capital market activity in the country.
Herzog Fox & Neeman acted for Bank of Jerusalem, with partners Natalie Jacobs, Nir Dash, and Elina Shechter leading the transaction, supported by Noa Tov, Netta Tauber and Shiri Cohen.
Epstein Rosenblum Maoz (ERM) represented Eshkol Investments, and its wholly owned SPV Yemin Moshe 25 Bond-1 Ltd., with advice led by partners Amnon Epstein, Itamar Lev Eldar, and Eran Mizrahi, with support from associate Nir Shaked.
