Revealed: How a German-US corporate giant became the world’s largest foreign financier of Israel’s wars

What Happened

In September 2025, the Allianz group—including its US subsidiary PIMCO—held approximately $2.67bn in Israeli government bonds, constituting 51.8% of all non-Israeli holdings captured in a dataset by research firm Profundo, making it the single largest foreign financier of Israel's wars. This figure grew from just $32m in November 2024, as Israel issued bonds at an average interest rate of 5.56% to fund military campaigns in Gaza, Lebanon, and Iran. By early 2026, total foreign holdings rose to $4.91bn, with Germany and the US accounting for 90.7%. Campaigners from BankTrack and senior Profundo researcher Ward Warmerdam argue the investments disregard human rights obligations and ICJ genocide allegations. Allianz and PIMCO did not respond to MEE's requests for comment.

Key Actors

Why It Matters

The revelation exposes a deep financial pipeline from Western investors directly underwriting Israel's military operations, at a time when the state faces genocide allegations at the ICJ. The concentration in a single German-US corporate giant raises questions about corporate complicity, legal liability, and the role of global finance in sustaining armed conflict. It also highlights the 'war premium' that makes such bonds lucrative despite credit downgrades and normative risks.

Watch For

Monitor potential legal or activist challenges against Allianz and PIMCO, including divestment campaigns or lawsuits. Watch for any company responses, policy shifts, or regulatory scrutiny. Keep an eye on future Profundo snapshots for changes in holdings, and any ICJ/ICC developments that may directly address third-party financiers. Also note any changes in Israeli bond issuance volumes and yields.