(Recasts with amount raised; changes dateline, previous JERUSALEM)
TEL AVIV, March 9 (Reuters) - Israel raised $1.5 billion in a dollar-denominated bond issue on Wednesday, its first such debt offering in three years.
The Finance Ministry said Israel sold $1 billion in a new benchmark 10-year bond and another $500 million by expanding an existing 30-year series.
Israel last tapped the U.S. dollar bond market in 2013, raising $2 billion in 10- and 30-year bonds.
The 10-year bond yielded 2.942 percent, or 105 basis points over the comparable U.S. 10-year Treasury note, and the 30-year bond 4.181 percent, or 150 basis points over the U.S. 30-year Treasury bond, the ministry said.
Demand for the bonds totaled $8.3 billion from over 200 investors in 30 countries. The interest on the 10-year bond was the lowest ever paid by the Israeli government in a dollar offering, the ministry said.
Israel is rated A1 by Moody's Investors Service, A+ by Standard & Poor's and A by Fitch Ratings, all with a stable outlook.
Barclays Capital, Goldman Sachs and Citi were underwriters for the offering. (Reporting by Tova Cohen and Steven Scheer; editing by Jeremy Gaunt, G Crosse)