Investors Buy $65 Million in Israeli Bonds

Investors have bought $65 million in Israeli bonds in just over a week in an emergency campaign to raise money for the country since the outbreak of war in the Middle East, officials said.

Also, a new stock fund composed of U.S. companies that do business with Israel is reporting growing interest since Iraq started firing missiles at Israel.

The interest in stocks and bonds connected with Israel comes predominantly from Jewish Americans seeking to help the country weather the crisis, officials said.

The bond sales, by the New York-based Development Corp. for Israel, are designed in part to make up for a projected loss of $1.6 billion a year from tourism, which evaporated after Iraq invaded Kuwait last August.

The two-week effort to sell $100 million in bonds worldwide had been planned in advance of the U.N. deadline Jan. 15 for Iraq to abandon Kuwait.

Iraq had promised to attack Israel in the event of a war.

Officials did not mention the possible war when appealing for sales of the bonds but noted that Israel was being overwhelmed with Soviet emigres who needed housing at a time when the country’s defense needed attention.

Bond sales began Jan. 20, two days after Iraq launched its first missile attack on Israel. Through Tuesday, the Development Corp. for Israel sold $65 million in bonds, spokesman Mark Benson said. The campaign ends Feb. 3.