The purchase of the Hagit East power plant for NIS 1.6 billion is one of the largest deals in the marketenergy Local in recent years. The power plant, which supplies 660 megawatts, will move fromElectric Company To the group of companies Housing and Construction andAdeltech, Which won the tender in December last year as part of the process for selling power plants managed by the IEC. This is since the decision was made in 2018 on the reform of the electricity sector, in which the company will cease to constitute a monopoly in the electricity generation segment.
Globes has learned that Discount Bank will head a consortium of lenders for the purchase of the power plant, along with the International Bank and the Menora Mivtachim Insurance Group, and the scope of financing is estimated at NIS 1.7 billion, out of a total cost of NIS 1.9 billion.
Discount’s expected share of the amount will be NIS 750 million, while Menora Mivtachim will provide credit in the transaction in the amount of NIS 650 million and the international NIS 300 million. In addition, the Keystone Fund and Menora Mivtachim will transfer the difference, NIS 200 million, to Adeltech, in exchange for an allotment of shares in the company.
GodFunding Is for a period of 15 years, and is based on availability payments and energy sales. Since this is a working asset, with no construction risks, the cash flow is immediate, so on the part of the lenders it is a low risk credit.
The Hagit power station is located slightly west of the Elyakim Interchange. This is a station with a production capacity of 1,400 megawatts, when part of its production capacity was sold in the tender – 660 megawatts. Four groups approached the tender: Dalia Energy, a RAM group from the Mivtach Shamir Group, Rafek Energy with Ashtrom Energy and a group from Shikun VeBinui with Adeltech, which, as mentioned, won.
This is Discount Bank’s fifth significant transaction in the last two years in the field of infrastructure, after the southern port, Ramat Hovav, the intelligence complex in the Negev and Arn (clean wind energy), with a total volume of over NIS 14 billion. As the head of the consortium, the bank will be the organizer and representative of the lenders in financing the purchase of the power plant.
On the bank’s side, the person leading the deal is his business division, headed by Yuval Gavish, who announced his departure a few weeks ago with his appointment as chairman of the non-bank credit company Ampa Capital.
On Monday, the bank announced that Hila Eran-Zik had a photo of Gavish’s replacement. Eran-Zik previously served as a member of the management of Bank Leumi and served as Deputy CEO, Director of the Human Resources Division and Chief Risk Officer of the Bank.
Menora Mivtachim is also active in the field of energy, both in Israel and abroad. The company also listed TERA LIGHT, which was established to hold shares in Menora Energy, which coordinates the group’s activities in the field.
The company has already invested in several technology companies operating in the fields of renewable energy – Nostromo, Finerji and Tagi – all three of which joined the stock market in last year’s wave of issues. At the same time, Menora Mivtachim is also investing in projects abroad, for example in collaboration with Solgarin in renewable energy projects in Europe.