The index consists of the 20 CPI-linked bond series issued by companies and banks with the highest market capitalization.

"The new index brings investors an important tool to track the performance of the biggest corporate bonds. It will also enable the issue of ETFs and other index products that track its performance," said Dror Shalit, Senior VP and head of the Trading & Clearing Department.

"The launch of the Tel-Bond 20 index complements the tremendous expansion of the bond sector on the TASE. Trading volumes in non-government bonds grew enormously during 2006, to a daily turnover of NIS 260 million, compared with NIS 70 million in the year before. During the year 2006 Israeli companies raised a total of NIS 42 billion," Mr. Shalit added.

The index is calculated based on the principle that no series of bonds shall weigh more than 9.5%. It shall be revised twice a year, on April 1 and October 1.

To be included in the Tel-Bond 20, a bond series must comply with the following:

A. Tradability: It must be among the 75 most-traded bonds.

B. Minimal market cap: NIS 250 million.

C. Rating: The bond must bear a Maalot rating of A-minus at least, or a Midroog rating of A3. If both rating agencies cover the bond, the lower of their ratings will prevail.

D. Term to redemption: Minimum a year and a half, maximum 20 years.

The new index shall not include structured bonds, convertible bonds, variable-interest bonds, and bonds whose cash flow is not known in advance.