INDIANAPOLIS (WISH) — Indiana’s state treasurer told News 8 Israeli bonds are not only a good investment, but are a way for the state to support that country.

In the months since Hamas’ Oct. 7 attack on Israel, the state of Indiana has purchased a total of $40 million in new Israeli bonds, on top of $65 million the state already had. In an interview with News 8 for All INdiana Politics, State Treasurer Daniel Elliott said his decision to buy the bonds was motivated first and foremost by investment performance. He said Israeli bonds currently pay a 5.5% interest rate, better than U.S. government bonds, and Israel has never missed a payment. Those bonds help support the Indiana Public Employee Retirement System, among other things.

Elliott said his office has gotten a number of calls about the bond purchases. He said they are funding infrastructure projects much like municipal bonds do, not weapons, or military operations.

“These are being used for roads, sewers, water, infrastructure for the communities in Israel,” Elliott said. “Israel is an ally. They have been an ally. When we had 9/11, they were there to support us, and I feel like we need to be doing the same thing for Israel.”

Elliott also provided an update on the state’s divestment from China, something the General Assembly mandated in legislation approved last year. He said the state currently has about $40 million invested in China, down from $480 million, and is in the process of divesting more. He said the state will easily finish that project well ahead of the deadline set by lawmakers.

All INdiana Politics airs at 9:30 a.m. Sunday on WISH-TV.