The Central Bank of Ireland briefed its media team about negative public reaction to its approval of Israeli war bonds and also highlighted the bonds had “no upper limit”.
In correspondence sent in August, a Central Bank official told the bank's communications team about the pending Israeli bonds approval, noting concerns about how the public would react because of what they called the "current geopolitical situation"
Sent two weeks before the bank formally authorised the bonds, the "current geopolitical situation" referred to in the correspondence was Israel's ongoing assault on Gaza and the West Bank, the subject of an investigation by the International Court of Justice.
"Please be aware the primary markets team in SMSD are currently reviewing a base prospectus document under the Prospectus Regulation (EU) 2017/1129 that may result in external queries on approval," the email reads. "The issuer is the state of Israel."
The email mentioned other issues officials thought might bring scrutiny, reading "The programme amount is not specified," meaning Israel could issue unrestricted debt.
The bank approved the bonds – used to fund Israel’s war on Palestine – on 2 September.
‘Not restricted by an upper amount’
In correspondence sent 20 August, the Central Bank of Ireland detailed how Israeli sovereign bonds, marketed to support Israel’s assault on Gaza, had no restrictions on the total sum that could be raised.
"Please note the following, the programme amount is not specified, therefore they can issue debt that is not restricted by an upper amount," the email said, highlighting this as important for the media team.
The bank’s media team were advised that the ongoing attacks on Gaza and the West Bank may bring scrutiny. “The state of Israel have previously approved documents with the primary markets team under this legislation however, with the current geopolitical situation we thought your team should be made aware,” the correspondence reads.
The email also quoted a passage from the prospectus document for the media team. "The Central Bank only approves this information memorandum as meeting the standards of completeness, comprehensibility and consistency imposed by the Prospectus Regulation,” it said, also noting Israel “are meeting the disclosure requirements under the PR” and therefore its bonds must be approved.
The official added that approval “should not be considered an endorsement of the issuer or of the quality of the bonds. Investors should make their own assessment as to the suitability of investing in the bonds."
The email noted that Ireland became the bonds' "home member state" because of Brexit.
"Their previous home member state was the UK, they chose Ireland post Brexit and the base prospectus was first approved in 2021," an official said.
By 5 September the Central Bank's preparations were put into action when it received a media query from The Ditch about the bond approval.
“We have a query from (redacted) on the latest prospectus sale. The story is currently live and even without our comment it is clear,” says an email sent the following day.
The records were released after a freedom of information request.
The Central Bank redacted names from the documents under section 32(1)(b) of the relevant legislation, stating that releasing staff details involved would "endanger the life or safety" of its employees due to "the sensitivity of the subject matter."
Several documents were withheld entirely, including an email attachment labelled "prospectus regulation document alert."
The Central Bank has been contacted for comment.
