Israel Bonds become more competitive

"It's significant because, to this day, some people view Israel Bonds as a less-than-veritable investment, mostly because of a lack of knowledge" of them, said a spokesman for Israel Bonds, adding that the addition of the LIBOR benchmark is "just another step" toward Israel Bonds being considered "a bona-fide investment option."

The LIBOR-based instruments "will provide investment options that could better reflect the environment of the global markets," Gideon Patt, Bonds president and CEO, said in a statement.

Israel bonds are securities issued by the state of Israel to help build the country's economy and infrastructure. Proceeds go to Israel's treasury for general use. Historically, Israel Bond funds have been earmarked for projects such as highways and bridges. Current projects include water desalination and high-speed train projects.