JERUSALEM, March 6 (Reuters) - Israel raised a record $8 billion in its first international bond sale since the Oct. 7 Hamas attacks, with very high demand even after Moody's gave Israel its first ever sovereign credit rating downgrade last month.
Needing additional funds to cover a widening budget deficit due to the war against the Palestinian Islamist group, Israel sold $2 billion of five-year bonds, and $3 billion each of 10 and 30-year bonds, the Finance Ministry said on Wednesday.
Analysts at Morgan Stanley had estimated the sale would be $4-6 billion due to Israel's "significant funding needs".
Demand for the dollar-denominated offering launched on Tuesday reached $38 billion, the highest ever for an Israeli international debt issue. Some 400 investors from 36 countries participated, the ministry said, noting the issue would allow for lower financing costs.
Accountant General Yali Rothenberg said the results showed an "unprecedented expression of confidence in Israel's economy by the world's largest international investors".