The seven-year bonds, which will pay fixed interest of 0.15pc, came after the accountant general held meetings last month in Tokyo and as part of a strategy to expand the Israeli government's investor base and diversify sources of financing.

The ministry said the placement was made to one of Japan's largest investors and that it was its first investment in Israeli government debt. It declined to name the investor.

A month ago, Israel issued its first 50-year bonds in a deal worth 500 million euros with an institutional investor in Europe.

These issues, "attest to the growing demand from quality global investors who are interested in investing in Israel's economy as well as the importance of expanding the investor base," Accountant General Rony Hizkiyahu said.

Goldman Sachs served as the underwriter of the offering.