The Ampal, American Israel Corporation, largest group of American private investors in Israel enterprises, today made its final payment of redemption on a ten-year $10, 000, 000 debenture issue, launched on April 1, 1948, just six weeks before the establishment of the State of Israel. The occasion was marked by a luncheon at the Bankers Club, attended by some 50 of this city’s leading bankers and financiers.
In handing the check of final payment to Fred Keuthen of the Manufacturers Trust Company of New York City, trustees for the issue, Rudolf G. Sonneborn, chairman of the board of Ampal, described the transaction as a singular “act of faith” in the economic future of the State of Israel by the Ampal group’s more than 30, 000 private investors.
The issue, first offered during the uncertain political conditions in the Middle East immediately preceding the creation of the State of Israel, was completely sold at the time and is the first such debenture bond issue to be paid off in its entirety.
Financial transactions between the United States and Israel were all too often associated with philanthropy and foreign aid, Abraham Dickenstein, president of Ampal said in his opening remarks, but Ampal had set an example of private investment and foreign trade which offered convincing proof that it paid to do business with Israel.
He stated that during 1957 the Ampal group had paid its stockholders dividends amounting to $550, 000, and interest to its bondholders and banks amounting to close to $1,000,000, Ampal and its affiliates have assets totalling nearly $40,000,000, of which about $16,000,000 comes from their paid up capital and reserves. Several other debenture issues of Ampal carrying four, four and one-half, and five percent interest were still outstanding. The latest issue of six percent five-year sinking fund debentures for $5, 000, 000 was recently registered with the SEC and is being offered to the public now by means of a prospectus.
Annual reports for fiscal 1957 published by the Ampal group show that during the last twelve months financial transactions of close to $30, 000, 000 have been carried out, mainly in the form of medium and long term loans through the Treasury of the State of Israel, through the Jewish Agency and to cooperative institutions in Israel through the National Committee for Labor Israel and through the Workers Bank Ltd.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
