Bank Leumi le'Israel Ltd., the country's No. 2 bank in terms of assets, said it would raise as much as $1 billion by selling medium-term notes.

The bank said in a statement that it would use the proceeds for "long- term financial needs." It said it expects to sell the first part of the offering in December but didn't specify the amount.

A spokeswoman said the bank plans to market the offer through subsidiaries, as it has with previous Eurobond offers, instead of using outside underwriters.

The bank will guarantee the notes. It plans to sell them through its Leumi International Investments NV subsidiary, based in the Netherlands Antilles.

The announcement comes a week after Bank Hapoalim, Israel's largest bank, said it would sell $600 million of medium-term securities.

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