Bank Leumi's €750M raise in EU. Israel-Japan autotech. New credit card challenger. TV10 Daily
Re: January 14, 2026 in Israel - and what it all means for investors at home and abroad.
Quick takes:
The split screen of the Israeli economy in 2026, continues today. While the State of Israel fights to maintain its credit rating, the Israeli Bank Leumi (TASE:LUMI) just went to Europe and raised nearly a billion Euros at a rating higher than the government itself. By using a sophisticated financial instrument (covered bonds) for the first time in Israeli history, the bank effectively bypassed the Country Risk and tapped directly into German and French pension funds. It is a masterclass in financial engineering. The state might be stressed, but the private sector’s balance sheet is bulletproof.
Today at a glance:
Auto-Tech
Electreon signs a ₪29M strategic development deal with Japanese Tier-1 supplier DENSO.
Executive Trade
Afcon Holdings Chairman buys ₪1.25M of his own stock in open market deal.
Real Estate Boom
Av-Gad approves ₪388M Jerusalem tower; Mutag Ironi launches in Givatayim.
Consumer Win
Knesset Committee approves bill requiring banks to provide 7 years of digital history for free.
Regulation & banking | Leumi wins in Europe
Bank Leumi (TASE:LUMI) successfully raised €750M (approx. ₪3B) in a bond offering to international institutional investors. This is a massive vote of confidence from Europe.
Despite political noise in the EU, capital markets remain pragmatic. Diversifying funding sources away from the Shekel allows Leumi to offer competitive financing for Israeli companies expanding into the Eurozone (like the Phoenix/MediPower deal we reported yesterday).
Pai-Pay applies to become Israel’s fourth credit card issuer.
This Israeli market, long dominated by a triopoly (Isracard, Max, Cal), faces a new challenger. Fintech company Pai-Pay has officially submitted an application to the Israel Securities Authority to become a licensed issuer.
Moving from prepaid cards to full credit issuance allows them to target the unbanked and foreign worker sectors more aggressively, while offering Banking-as-a-Service infrastructure to other players.
CEO Harel Shaked: “Unlike traditional credit companies that rely on outdated systems, we are coming to market with AI-native tools developed in-house.”
Auto-tech | Israel/Japan
Electreon Wireless (TASE:ELWS) has moved beyond pilots into the industrial big leagues. The company signed a binding Memorandum of Understanding (MOU) today with Japanese automotive giant DENSO. This follows their November move to acquire US-based InductEV, signaling a rapid transition from experimental road tests to becoming a critical supplier for passenger and heavy-duty electric fleets.
Electreon will provide development services for wireless charging components (specifically On-Board vehicle receivers). DENSO will pay up to $3M annually for three years (Total: ~$9M / ₪29M). DENSO is a Tier-1 supplier for Toyota and others. This deal is mass production for the global passenger and heavy-duty market. The stock climbed 4.2% on the news and is now up 30% since the start of January.
Defense & tech | A small-cap rally
While defense giants like Elbit (TASE:ESLT) dominate the headlines, the Small-Cap Defense trade is generating massive alpha. RP Optical (TASE:RPOL) announced a $5.9M contract today with a “Material Israeli security client.”
The deal covers electro-optical systems based on uncooled cameras for land-based operations. This contract runs through 2029, adding long-term visibility.
Investors are waking up to the supply chain. The IDF and foreign armies need components, not just platforms. RP Optical’s 30% surge this month suggests the market is re-pricing these component suppliers as high-growth tech stocks.
Real Estate | Jerusalem skyline & Givatayim
The Jerusalem Planning Committee gave the green light to Av-Gad (TASE:AVGD) for a massive urban renewal project in the capital’s San Martin district. The company will demolish 3 old buildings (36 units) and construct a 30-story tower with 155 new apartments. The expected revenue stands at ₪388M, with gross profit estimated at ₪68M (17.5% margin).
CEO Raem Ratzon called this milestone “Our first project in Jerusalem reaching maturity, proving that demand in the capital remains rigid despite market fluctuations.”
Mutag Ironi announced a new urban renewal project at 8-10 HaVradim Street in Givatayim. The company will invest ₪74.4M to demolish two buildings and construct a 9-story luxury complex. Expected revenues are ₪87M.
CEO Matan Sofer notes that Givatayim’s proximity to Tel Aviv employment hubs continues to drive “lively demand” despite relatively high interest rates.
TASE snapshot for Wednesday, Jan. 14, 2026
TA-35 Index (TASE:TA35): 🟢 +1.59%
TA-90 (TASE:TA90): 🟢 +0.27%
TA-125 (TASE:TA125): 🟢 +1.29%
That’s our Wednesday here in Israel 🎉
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