(Bloomberg) -- Israel re-entered the global bond market on Tuesday, starting the sale of dollar debt as it looks to bolster its balance sheet after more than 16 months of war.

The country is offering five- and 10-year tranches with respective spread guidance of around 150 basis points over US Treasuries and 165 basis points, according to a person familiar with the matter.

The final pricing and size will probably be decided later on Tuesday. Each tranche is likely to be at least $500 million.

Israeli financial officials met investors in the UK and US last month as part of their preparation for a bond, Bloomberg reported.

Israel typically sells dollar bonds just once or twice a year. Its last such deal was in March 2024, when it issued $8 billion, its biggest-ever bond.

The country’s fiscal deficit has widened significantly since the start of a multi-front conflict against Iran-backed militias in October 2023, leading to a record issuance of bonds last year in international and local markets.

Ceasefires with Hezbollah since November and Hamas since last month have started to ease the economic impact of the war. Israel’s 12-month trailing budget deficit narrowed to 5.8% of gross domestic product in January from 6.9% in December, the finance ministry said on Monday.

Israel’s bond spreads and credit-default swaps — used by some traders to hedge against a default — have fallen sharply in that timeframe. The shekel has also strengthened.

Bank of America Merrill Lynch, Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. are arranging the latest bond sale.

(Updates with details on bond meetings last month and spreads narrowing.)