tase launches new tel-bond index – tel bond non-linked

3.12.2014

TASE Launches New Tel-Bond Index – Tel Bond Non-linked

Index Comprises Corporate Bonds Included in Tel Bond-Shekel and Tel Bond-Floating Indices

The Tel Aviv Stock Exchange (TASE) Board of Directors approved the launch of

a new index – Tel Bond Non-linked, the eleventh Tel Bond index calculated by

TASE. The new index will be launched on January 20 th, 2015. It is anticipated

that the index will include 74 bond series with a 2% weight cap limit, issued by

45 issuers with a market capitalization of approx NIS 50 billion.

The quality of the new index is grounded, among other things, in the diversity of

its constituent bonds. The current ratio between floating interest rate and fixed

rate bonds in the new index (60% fixed and 40% floating) is more balanced than

the “parallel” Israel government bond index (85% fixed/15% floating).

The base price of the new index will be the reference index price of the Tel

Bond –Composite index set on the trading day preceding the index launch date.

Instruments tracking the non-linked government bond index have grown by

approximately 130% over the past year, reaching NIS 300 million. Considering

the fact that the volume of instruments tracking Tel Bond indices is four times

larger than that of instruments tracking government bonds, the expectation is

that the new index will be quite successful. The launch of the new index is part

of TASE’s policy of offering a wide array of Tel Bond indices. The launch will

likely create demand that will contribute to the development of this sector of

corporate bonds, which is characterized by investment grade issues with short

duration.

- 2 -

Simulation of Tel Bond Non-linked Constituency

Series Bond Market Cap (NIS million) Weight

1 Leumi Finance B13 2,467 2.00%

2 Poalim Hanpakot 11 2,074 2.00%

3 Poalim Hanpakot 29 1,900 2.00%

4 Delek Group B15 1,747 2.00%

5 Bezeq B8 1,456 2.00%

6 Elbit Systems B1 1,414 2.00%

7 Israel Aerospace Industry B3

1,332 2.00%

8 Mizrahi Tefahot Issuing B34

1,213 2.00%

9 ADAMA Agriculture B4 842 2.00%

10 Clalbit B1 837 2.00%

11 B Communications B3 791 2.00%

12 Israel Corporation B9 725 1.89%

13 Shikun & Binui B7 697 1.81%

14 Discount Manpikim B5 688 1.79%

15 Cellcom B5 664 1.73%

16 Gazit Globe B1 646 1.68%

17 Partner Communications B5

609 1.59%

18 Hot B2 574 1.49%

19 Delek Group B14 523 1.36%

20 Strauss Group B4 520 1.35%


488 1.27%

22 Industrial Building B16 479 1.25%

23 Hadera Paper B6 458 1.19%

24 Shufersal B5 453 1.18%

25 Avgol Industries B2 424 1.10%

26Israel Discount Bank

B11402

1.05%

- 3 -



28 Phoenix Capital Raising B3

388 1.01%

29S. Shlomo Holdings

B15383

1.00%

30 The Zarasai Group B2 382 0.99%

31 Bayside Land B7 356 0.93%

32 Elco B11 356 0.93%

33 Isras Investment B11 339 0.88%

34 Cellcom B7 337 0.88%

35 Hadera Paper B5 333 0.87%

36 Poalim Hanpakot B16 299 0.78%

37 Union Issuances B7 270 0.70%

38 Azorim Investment B10 264 0.69%

39 Shufersal B3 248 0.64%

40 Dor Alon Energy B4 232 0.60%

41 Y.H. Dimri Building B4 230 0.60%

42 Clal Industries B15 225 0.59%

43Mediterranean Towers

B1215

0.56%

44Delta-Galil Industries

B5205

0.53%

45 Paz Oil B3 3,223 2.00%

46 Mizrahi Tefahot Issuing B37

1,301 2.00%

47 Leumi Finance B301 1,062 2.00%

48 Extell B1 1,061 2.00%

49 Poalim Hanpakot B13 1,012 2.00%

50 Bank Leumi LeIsrael B201

975 2.00%

51 Ashtrom Group B2 807 2.00%



54 Paz Oil B4 758 1.97%

55 Bezeq B7 755 1.96%

- 4 -



57 Gazit Globe B5 552 1.44%

58 Partner Communications B4

545 1.42%

59 Property & Building B7 535 1.39%


61 Avgol Industries B3 520 1.35%


472 1.23%

63 Delta-Galil B1 436 1.13%


65 Norstar Holdings B8 400 1.04%

66 Clalbit Finance B8 371 0.96%

67 Jerusalem Finance & Issuance B8

363 0.95%

68 Albar Mimunit Services B14

351 0.91%

69 Phoenix Capital Raising B4

348 0.91%

70Jerusalem Economy

B13314

0.82%

71 Electra B4 252 0.66%

72 Cellcom Israel B9 238 0.62%

73 Global Knafaim Leasing B1

221 0.58%

74 Jerusalem Finance & Issuance B7

210 0.55%

50,160 100%

tase launches new tel-bond index – tel bond non-linked

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