(Bloomberg) — Several U.S. states have purchased Israeli bonds as the country enters a war with Hamas and looks to raise funds.
The purchases, including $20 million from the New York State Common Retirement Fund, comes as Israel’s credit rating will be tested by the war that is expected to worsen in the coming days. Moody’s Investors Service said Wednesday that a prolonged conflict “could have implications” for debt issuers in Israel.
The uncertainty around Israel’s financial health is not deterring U.S. state finance officials who said their faith in the country’s institutions and investments remains strong.
“New York state’s pension fund buys Israel bonds because we have confidence in the spirit of innovation and tenacity of Israeli people and in the strength of our investments there,” New York State Comptroller Thomas DiNapoli said in a statement Friday.
“In addition to providing a steady return for our pension fund’s members, Israel bonds help support one of our nation’s strongest allies,” he added.
Public finance officials in Ohio, Florida, Texas and Illinois have also announced their own debt purchases.
Texas Comptroller Glenn Hegar announced a $20 million investment in Israel bonds on Friday to provide liquidity to the country as it defends itself against Hamas, according to a statement.
“The state of Israel is a solid investment,” Hegar said. “As a Texas taxpayer, I am proud to support our ally, and as your Comptroller, I am confident this is a prudent financial decision for the state of Texas.”
State funds in Ohio, Georgia and Illinois were also among the bond-buying effort in recent days.
“The extent to which the United States has supported Israel is incredible, demonstrating how this support cuts across partisan lines and is deeply rooted nationwide,” Dani Naveh, chief executive officer of Israel Bonds, said Thursday in a video statement posted on X, the social media site formerly Twitter.