Bank Leumi, Israel's second largest commercial lender, said on Monday it planned to raise up to NIS 150 million shekels in an offering of deferred notes to institutional investors.

The first set of notes, bearing interest of up to 3.8%, will mature in February 2004 while the second set will mature in February 2006 and bear interest of up to 4.5%. The final interest rates will be set in the tender.

A Leumi spokeswoman said this week's offering was part of a framework to raise up to NIS 400 million overall in deferred notes.