AUSTIN (KXAN) — On Friday, Texas Comptroller Glenn Hegar announced the purchase of $20 million in Israel bonds, which will provide liquidity to Israel as it defends itself against Hamas, according to a news release from Texas Comptroller’s office.
“Texas has long had a deep spiritual, political and economic connection to Israel and the Israeli people,” Hegar said in the news release. “They are our friend and ally, and Texas supports their right to defend their people against these cowardly terrorists. We will stand with them, and we will provide them with the financial liquidity needed to respond to the atrocities we’ve all witnessed.”
Furthermore, since 1994, Texas has invested in Israel bonds annually, according to the comptroller’s office. After this purchase, Texas will hold nearly $100 million in Israel bonds, the release said. Since Hegar has taken office, Texas has purchased $140 million in Israel bonds.
The bonds, which will mature in five years, are fixed-rate and carry an interest rate of 5.74%. Israel bonds were first sold in 1951, according to the comptroller’s office.
“The state of Israel is a solid investment,” Hegar said in the release. “For nearly 30 years, Israel bonds have been a key component of our investment portfolio at the state’s treasury, providing a reliable return for the people of Texas. 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.”
Israel has maintained “an impeccable record of interest and principal payment,” the release said.