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Israeli Investors Buy 10,000,000 Pounds Worth of Oil Bonds in One Day

Ten million Israeli pounds worth of bearer bonds, convertible into common shares, issued by the National Oil Company, were snatched up by investors on the first day they were available, the company announced today.

It was the first time the Israel public was offered a chance to invest in oil prospecting. Previously, such prospecting was conducted with funds raised directly by the prospecting firms. The company had announced that the shares would be sold over a six-day period but the entire issue was purchased in a few hours.

One effect of the transaction was a drop in dollars and gold in the free exchange rate which in recent years have shown a continuous tendency to rise. The drop in demand for dollars also was attributed to Finance Minister Levi Eshkol’s statement that Israel would not devalue the pound.