Graphic Strip - Corporate Bonds Listing
Corporate Bonds Listing

In addition to government bonds, the Tel Aviv Stock Exchange enables the listing of various types of corporate bonds:

  • Ordinary bonds - intended to finance the business activity of companies.
  • Structured bonds - SPCs (Special Purpose Company) whose entire activity is the issuance of these bonds, and the company is, in effect, a financial instrument. 
  • Bonds that are paid in shares – a company the shares of which are included in the TA-125 index may determine, in the terms and conditions of the bonds included in the documents pursuant to which they are first offered, that in addition to the possibility of payment in cash, it may pay the principal's redemption proceeds and/or the interest payments with its shares, provided that the terms and conditions of the bonds included in the aforesaid documents are according to the terms set by the regulation.
  • Hybrid bonds - A company may issue hybrid bonds, on fulfillment of one of the following conditions: a)the company's shares are included in the TA-125 index and at least one series of its bonds is listed for trade; b)the public holdings value in the series of hybrid bonds is at least NIS 200 million, and one of the following is fulfilled and the company's capital pursuant is not less than NIS 500 million or the hybrid bonds are rated, with one of the following ratings:a rating of at least (A-) or at least (A3) by local rating or a rating of at least (BBB-) or at least (Baa3) by international rating. The hybrid bonds shall be redeemable in one payment. The terms and conditions of hybrid bonds shall provide that payment of the interest may be deferred for a period of up to six years 

Advantages of Listing Bonds on the TASE

  • Unique and deep bond market

    Trading in bonds through the TASE is ongoing, and is considered efficient, liquid and very transparent in comparison to the global markets in which the bonds are traded OTC.
  • Attractive debt raising costs

    Bonds listed in Israel are rated according to a local rating scale, which is different from the international rating scale, and thus enjoy a high rating relative to the international rating, enabling them to raise debt at lower interest rates than other markets.
  • Low buying and selling costs

    The quote intervals between the selling price and the purchase price in bonds are lower than the intervals for stock quotes. 

Rules for Listing Bonds

The TASE has the following rules applicable to the listing of bonds by a traded company or by a company issuing bonds for the first time:
Equity Track
Non-Equity Track
Alternative A
Alternative B
Alternative A
Alternative B
Alternative C
Equity of NIS 24 million
Equity of NIS 16 million and local rating of BBB- or Baa3
Local rating of A- or A3 or Baa3 or BBB-international rating
NIS 200 million value of a  bonds series
For a TASE company:
The value of traded securities is NIS 200 million
The value of the public's holdings in the series is NIS 36 million
35 Offerees + holding value of NIS 200,000 per holder.

Under the terms of the bonds, it is possible to determine the conditions under which the company may decide on early redemption of the bonds.