Citibank has filed documents with the US Securities and Exchange Commission (SEC) to register American Depositary Receipts (ADRs) for shares of Mizrahi Tefahot Bank, *Globes* has learned. This means that investors in the US will be able to purchase shares of the Israeli bank on the US market, in dollars and during US trading hours, without needing to open an account that allows for trading on the Tel Aviv Stock Exchange (TASE).
According to the document, filed last Thursday via Form F-6, Citibank is registering up to 50 million ADRs. Each ADR represents one-fifth of a standard Mizrahi Tefahot share. The registration takes effect immediately.
Citibank initiated this move independently, acting as the depositary bank; and did not require approval from the Israeli bank. Mizrahi Tefahot did not initiate the move, but neither did it oppose it. Mizrahi Tefahot Bank has confirmed these details.
In the US market, this structure is known as an "unsponsored" ADR. SEC regulations allow a depositary bank to establish such a program for the shares of a foreign company, provided that the company publishes the information it is required to disclose in its home market, in English, on its own website.
In the filing, Citi notes that Mizrahi Tefahot meets this requirement and provides a link to the bank’s English-language website. In practice, Citibank purchases shares of Mizrahi Tefahot on the TASE, deposits them with a custodian, and issues certificates for them that are traded in the US. Such certificates are typically traded over-the-counter rather than on a major exchange, such as the NYSE or Nasdaq. The bank itself is not required to file reports with the SEC.
For Mizrahi Tefahot, the advantage is clear. The pool of investors with exposure to the stock expands. Some US-based investors, including private individuals and entities restricted to investing in securities traded within the US, find it difficult, or are entirely unable, to trade directly on the TASE. An ADR removes this barrier, with the securities cleared through US systems just like any domestic stock.
On the other hand, with an unsponsored ADR, the fees are borne by the holders of the certificates rather than the company, and dividends are converted into US dollars by the depositary bank. Furthermore, trading volume for such certificates tends to be low during the initial stages.
With this listing, Mizrahi Tefahot joins Bank Hapoalim, whose shares have been traded in the US for years via an ADR program, also on an OTC basis. The difference is that, in the case of Mizrahi Tefahot, the initiative originated with the depositary bank rather than with the bank itself.
The Bank of Israel opened the door
The registration by Citibank comes three months after "Globes" revealed that the Supervisor of Banks sent out a draft circular to the banking system, allowing banks to publish financial results in line with US Generally Accepted Accounting Principles (US GAAP). Until now, banks have reported according to the Supervisor’s public reporting guidelines, which are largely based on US standards but incorporate adjustments specific to Israel.
This change will enable banks to pursue a listing on a Wall Street exchange. Unlike an unsponsored ADR traded OTC, a listing on a major exchange requires reporting to the SEC in a format familiar to US investors. At the time, market observers estimated that such a move could boost the liquidity of bank stocks, attract foreign investors, and support the share prices of banks that choose this path.
"Israeli banks are currently of interest to US investors," a market source told "Globes" at the time. "They have made significant strides in their management over the last few years. Furthermore, Israel’s banking system, even amid a war, is delivering phenomenal results that underscore its immense potential."
While the listing facilitated by Citibank does not constitute a full-scale Wall Street listing, it nonetheless signals interest from US entities in the shares of Israeli banks. Mizrahi Tefahot, which trades at a market cap of NIS 62 billion, is the second Israeli bank whose shares will be available to investors in the US.
Published by Globes, Israel business news - en.globes.co.il - on November 9, 2026.
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