Barclays 'to withdraw from Israel bond auction' amid pro-Palestine backlash

British banking giant Barclays is planning to withdraw from new Israel government bond auctions amid pressure from pro-Palestine activists, the Financial Times reported.

The British newspaper said the bank is trying to address criticism of its investments in Israel, which have been put under the spotlight following the start of Israel's war on Gaza.

Bonds are a form of debt that are sold by states to international and domestic investors in order to raise funds for public spending, with interest being paid by the state to the bond holder. 

Barclays will be withdrawing from the purchase of future Israeli bond offerings, but will continue acting as a "primary dealer", which helps the state to sell the bonds.

Thursday's report of a withdrawal does not mean a complete end to involvement by Barclays in the Israel bond market.

The Financial Times quoted Israel's accountant general, Yali Rothenberg, who said: “We appreciate the bank’s statement affirming its continued commitment to the State of Israel.

“It is crucial that leading global financial institutions, such as Barclays, choose to resist boycotting Israel and support its legitimate right to self-defence as a leading western democracy,” he added.

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