The Finance Committee of the Knesset has approved the regulation, initiated by the ISA, allowing EIB to issue securities in Israel, under the arrangement similar to the one authorizing the issue of special securities in Israel by the World Bank; the World Bank amendment to the Securities Law went into effect in March 2005
The EIB (European Investment Bank), owned by the EC, is the European Union‘s long-term lending institution, actively supporting European R&D projects as part of EU’s objective of building the world’s leading knowledge-based economy. The bank invests in Europe and other regions. It is perceived as a stable and a reliable institution. The EIB has a department investing in the Mediterranean region, through which about 2/3 of the European assistance is transferred directly to countries included in the Barcelona Agreement (initiated in 1995 in order to encourage economic cooperation between various Mediterranean counties). As part of its activities in Israel, the EIB has invested about 400 million Euros in various projects related to water desalination, development of sewage infrastructure and assistance to small businesses.
The Amendment, approved today by the Finance Committee, allows the EIB to offer its securities to the public in Israel, including by means of registration for trade on the TASE. The aforesaid securities do not provide their owners with membership or voting rights in the EIB and cannot be converted into securities providing the aforesaid rights. Said securities will be issued without prior publication of the prospectus and will be exempt from on-going reporting requirements applicable to reporting companies under the law.
Under the amendment the European Investment Bank will be able to offer its securities to the public according to the public offer document that differs from the prospectus in content and as regards the entities carrying responsibility for its publication. The bank will submit reports to the TASE and the ISA, on regular basis, according to a special arrangement.
The new regulations come to replace and annul the existing World Bank Regulations 2005, to the Securities Law, meaning – new regulations apply both to the World Bank and the European Investment Bank, while the reporting requirements of the World Bank are subject to requirements stipulated for it by the SEC in America including all other information made available to the public in the US, thus, the EIB reporting is subject to reporting requirements stipulated for it by the FSA in Britain including all other information made available to the public in the EU.
He approved amendment supplements and strengthens the connection established between Israel and the EIB under the framework agreement regulating the bank’s activities in Israel, the agreement that was signed in 2000 and approved by the government of Israel in 2006. The agreement states, inter alia, that: “EIB shall enjoy a most favored status, afforded to an international institution, vis-?-vis its activities in Israel, or from treatment afforded according to any agreement regarding handling or protecting of investments or supply of financial services, accordingly”.
