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First International Bank of Israel

Full Text

הבנק הבינלאומי הראשון לישראל בע"מ
www.fibi.co.il

An Israeli bank that provides a variety of banking and financial services.

The bank provides financial foundation and services for settlement activities and settlement expansion, and benefits from financial activity in illegal Israeli settlements in the occupied Palestinian territory.

Financing Construction and Infrastructure Projects in Illegal Settlements

The bank provides financial infrastructure to various construction companies for the purpose of construction of real estate projects in settlements in the occupied West Bank and holds as collateral the company's rights to the land and the project.  

In April 2021, the bank granted a loan to the company Ram Aderet - Salait for a construction project on 7,657 m2 of land in Givat HaMatos settlement in occupied East Jerusalem, according to Plan no. מק\19245: Guidelines for Unification and Division without Owners` Consent in Givat HaMatos. The bank holds as collateral the company’s contractual and actual rights in the land and project, including the right to receive funds from homebuyers and the right to receive VAT refunds and any other funds from Israeli tax authorities in relation to this project.

In February 2024, the bank granted the company an additional loan according to tender ים/61/2020 for the construction of 130 housing units on7,657 m2 as part of the same project. In July 2024, the bank granted the company an additional loan for the execution of the same project in four plots in Givat HaMatos. The bank holds as collateral the company’s rights in the properties.

In January 2019, the bank signed a financing agreement with Ram Aderet for accompanying a project for the construction of 300 housing units in two complexes with a total area of about​​ 30,000 m2 in the settlement of Ariel in the occupied West Bank.

In 2021, the bank accompanied the Israeli company Bardarian Brothers in its project to construct a parking lot for buses in the Atarot settlement north of Jerusalem near the Atarot Industrial Zone. The bank holds as collateral all of the company's rights in the project, and all of the profits from the asset, as well as the right to receive VAT refunds and any other funds from Israeli tax authorities in relation to this project.

Transportation Infrastructure Projects in East Jerusalem

The Jerusalem Light Rail

In 2020, FIBI Bank was part of a consortium led by Hapoalim Bank to finance the expansion of the Red Line and the establishment of the Green Line as part of the Jerusalem Light Rail’s (JLR) J-Net Project. The consortium awarded the Light Rail’s operators CAF and Shapir Engineering and Industry NIS 3.5 billion.

The Jerusalem Light Rail (JLR) network is a large-scale Israeli transport infrastructure project connecting large settlement blocks in occupied East Jerusalem to the center of the city and its western side, creating territorial continuity and easing settler movement on both sides of the Green Line. For more on the J-Net Project see Who Profits report Developments in the Expansion of the JLR Network: The J-Net Project.

Road 50

In 2018, Who Profits documented the bank's involvement in accompanying road infrastructure projects on occupied territory, including the expansion of Road 50, connecting Atarot and Gilo settlement neighborhoods in occupied East Jerusalem. the bank also accompanied a paving and development project near Wadi al-Joz in occupied East Jerusalem. For more information see Paving the Way: The Role of Israeli Banks in Road Construction in the Occupied Palestinian Territory.

In 2017, Who Profits documented the vast involvement of the bank in settlement construction and infrastructure works on occupied territory. The report showed that the First International Bank of Israel accompanied construction projects in the settlement of Modi'in Ilit, and accompanied infrastructure work on highway 50, which connects the northern settlements of East Jerusalem – through the city center – with Highway 60 (the Tunnels Highway) and the settlement neighborhood of Gilo in the south of East Jerusalem. The report has also shown that through its then-subsidiary, Bank Otsar HaHayal (which was merged with the bank in 2019) the bank provided loans to local authorities of settlements and to Israeli businesses operating in the occupied territory. For the full report see Financing Land Grab: The Direct Involvement of Israeli Banks in the Israeli Settlement Enterprise.

Banking Services to Settlement Local and Regional Councils

The First International Bank of Israel provides loans, credit and banking services to settlements regional and local councils in the occupied West Bank and the Syrian Golan. These loans can be used to develop infrastructure, build public facilities and provide municipal services to the residents of the settlement.

The bank has provided loans and various banking services for the settlements of Karnei Shomron, Ariel, Beitar Ilit, Alfei Menashe, Maale Efraim, and the Har Hevron Regional Council in the occupied West Bank.

Karnei Shomron

As of July 2024, the bank has 6 active pledge agreements with the Karnei Shomron Local Council in the occupied West Bank.

In January 2020, the bank signed a pledge agreement with the Karnei Shomron Local Council for a period of 5 years (ends 2025) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

In January 2018, the bank signed a pledge agreement with the Karnei Shomron Local Council for a period of 99 years (ends 2117) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

In November 2017, the bank signed a pledge agreement with the Karnei Shomron Local Council for a period of 99 years (ends 2116) against the council’s current and future revenue income and rights that come from all the properties located in its jurisdiction as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

Ariel

As of July 2024, the bank has 3 active pledge agreements with the Ariel Municipality in the occupied West Bank.

In July 2022, the bank signed a pledge agreement with the Ariel Municipality for a period of 99 years (ends 2121) against the council’s current and future revenue as collateral with the exception of funds originating from water and sewage.

In January 2020, the bank signed a pledge agreement with the Ariel Municipality for a period of 81 years (ends 2101) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget.

In December 2016, the bank signed a pledge agreement with the Ariel Municipality for a period of 99 years (ends 2115) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

Beitar Ilit

As of July 2024, the bank has 2 active pledge agreements with the Beitar Ilit Municipality in the occupied West Bank.

In March 2006, the bank signed a pledge agreement with the Beitar Ilit Municipality for a period of 99 years (ends 2105) against the council’s rights according to an agreement with Bank Clearing Center Ltd. including the right to receive funds accordingly.

Bank Clearing Center Ltd. (MASAV) is a banking corporation owned by the Leumi, Poalim, Discount, Mizrahi and International banks, and provides services to all banks and their customers.

In September 2005, the bank signed a pledge agreement with the Beitar Ilit Municipality for a period of 99 years (ends 2104) against the council’s current and future revenue.

Alfei Menashe

In July 2014, the bank signed a pledge agreement with the Alfei Menashe Local Council for a period of 99 years (ends 2113) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

Har Hevron

The Har Hevron Regional Council provides services to 20 settlements in the South Hebron Hills area in the occupied West Bank.  

On 6 December 2022, the Har Hevron Regional Council general assembly approved a NIS 1 million credit loan from the First International Bank for 2023, according to the banks’ requirements, including pawning of the council's revenue as collateral. In 2022, the council received a NIS 1 million credit loan from the bank.

In July 2011, the bank signed a pledge agreement with the Har Hevron Regional Council for a period of 99 years (ends 2110) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget and revenues from water and sewage.

In August 2005, the bank signed a pledge agreement with the Har Hevron Regional Council for a period of 25 years (ends 2130) against the council’s current and future revenue as collateral.

Maale Efraim

In July 2002, the bank signed a pledge agreement with the Maale Efraim Local Council for a period of 99 years (ends 2101) against the council’s current and future revenue as collateral with the exception of funds originating from the state budget.

Branches in Settlements

The bank operates branches in settlements in the occupied West Bank and East Jerusalem.

The bank operates branches in the settlement of Ariel, Beitar Ilit and Modi’in Ilit in the occupied West Bank and in Ramot settlement neighborhood in occupied East Jerusalem. The bank’s subsidiary, Massad Bank, operates a branch in the French Hill in occupied East Jerusalem.

Services to the Israeli Ministry of Defense

The bank provides banking services to the Ministry of Defense (IMOD) and operates branches in Israeli military bases.

In May 2023, the bank won the IMOD tender for providing loans and banking services to beneficiaries of the ministry for a period of 7 years with an option for 3 more years, and the continued operation of branches at Israeli military bases.  

Financing Arms Companies

In January 2020, the bank granted Bardarian Brothers a loan based on a contract between the company and state-owned arms manufacturer Rafael Advanced Defense Systems. The bank holds as collateral all the rights of the company and its revenues arising from the contract.