Key facts
- Allianz, a German insurance and financial services giant, and its subsidiary PIMCO became the largest foreign financiers of Israeli government bonds.
- By September 2025, the Allianz group held approximately $2.67 billion in Israeli government bonds.
- This holding represented over 51% of all non-Israeli holdings in Israeli government bonds in the analyzed dataset.
- Israeli government bonds issued during the conflict period offered an average interest rate of 5.56%.
- Germany and the US were the primary drivers of non-Israeli demand for these bonds.
Allianz, the German insurance and financial services giant, along with its subsidiary PIMCO, has emerged as the world's largest foreign financier of Israel's government bonds. Data from sustainability research firm Profundo indicates that by September 2025, the Allianz group held approximately $2.67 billion in Israeli government bonds across its various fund subsidiaries. This figure represented over 51% of all non-Israeli holdings captured in the dataset at that time, significantly exceeding the combined holdings of the US, UK, France, and other nations.
Governments issue bonds to raise capital, and for Israel, these sales have been crucial in financing its military campaigns. The bonds issued during the conflict period have offered a significantly higher interest rate, averaging around 5.56%, compared to pre-war issuances, making them attractive to yield-seeking institutional investors despite credit rating downgrades. This "war premium" has drawn criticism from human rights organizations like BankTrack, which argues that PIMCO's continued investment demonstrates a disregard for human rights responsibilities and international legal obligations.
The Profundo dataset, tracking institutional investors between late 2024 and early 2026, reveals a substantial increase in Western demand for Israeli bonds. Total non-Israeli holdings grew fourfold in just over a year. Germany and the US together accounted for over 90% of this growth. Notably, the Allianz group's holdings surged from $32 million in November 2024 to $2.6 billion by September 2025, an unmatched increase within the dataset. Profundo's senior researcher, Ward Warmerdam, suggested this investment was disproportionate and deliberate, especially after the October 7th attacks and allegations of genocide at the ICJ.
PIMCO, a wholly owned subsidiary of Allianz since 2000, manages $2.27 trillion in total assets. Its role extends beyond its own investments, as it also acts as an external sub-manager for global pension funds and institutional investors. A previous investigation revealed PIMCO purchased $29.2 million in Israeli government bonds for the UK's Border to Coast pension pool, a move that came to light after activist inquiries. PIMCO's stated rationale for these purchases was based on Israel's credit rating and economic fundamentals, though this has been questioned by critics. The full extent of PIMCO's holdings in Israeli bonds across all its mandates remains largely invisible to the public, suggesting the $2.67 billion figure may be an undercount.