Tower Insurance has pledged to invest an additional $ 75 million in the second part of Doral’s huge Indiana project as part of its ESG strategy
Migdal Insurance is expanding its strategic partnership with Doral LLC, and has committed to invest up to $ 75 million in the second tranche of Doral’s flagship project in Indiana USA (Mammoth Solar). In total, Migdal will hold 22.5% of the rights in the second part of the project. Of the project is estimated at about 360 megawatts (DC).
With the signing of the partnership agreement, Migdal will increase its direct investment in Doral’s Mammoth Solar project, which is the largest Israeli solar project in the United States, and one of the largest in the United States in general, to up to $ 175 million, and its total capital and debt investment in Dora LLC and in projects it owns for up to $ 415 million. Migdal’s investment in the second part of the project is being made as part of the option given to it as part of the investment deal from last May, to participate in specific Doral LLC projects on similar terms.
Last May, Migdal Insurance Company acquired a 20% stake in Doral LLC, a US subsidiary, for $ 110 million. In addition, Migdal provided a $ 130 million credit facility to Doral LLC, and invested directly in the first (northern) part of Doral’s flagship project in Indiana (Mammoth Solar), which is valued at approximately 480 megawatts (DC), approximately $ 100 million.
The Mammoth Solar project, located in the Stark and Polaski counties of northern Indiana, covers an area of about 50,000 dunams of agricultural fields, an area similar in size to the area of Tel Aviv-Yafo as a whole, and produces about 1.6 gigawatts (DC) of clean energy – enough To provide electricity to 275,000 households in the Midwest each year. The project reflects an investment of about $ 1.5 billion, and due to its size it is divided into three phases. Mammoth North with an estimated power of 480 megawatts (DC), Mammoth South with an estimated power of 360 megawatts (DC) and Mammoth Central with an estimated power of about 720 megawatts (DC). Preparations for the construction work in the first part of the project have begun in recent months. Mammoth Solar is one of the largest photovoltaic projects in the United States, and the largest initiated, established and owned by an Israeli-controlled company in the United States.
Doral LLC is owned by Doral (41.78%), by an American partner, Nick Cohen, who serves as the company’s CEO (38.22%), and the balance by Migdal (20%).
Yaki Neumann, CEO of Doral: “Expanding our cooperation with Migdal further expresses the trust that the institutional bodies in Israel place in renewable energy in general, and in Doral in particular. We have selected partners who want their money to not only yield a return, but also benefit the environment and the public. We continue to initiate and develop additional projects in the United States, Europe and Israel.
Erez Migdali, Acting Director of the Investment Division at Migdal Insurance: “We are pleased to deepen our investment in Doral’s operations in the United States. This significant, ever-expanding partnership is an indication of our strong faith in the field and specifically in Doral’s operations. The investment is in line with policy. The company’s ESG has been around for a long time and as part of it we have formulated an investment plan of over NIS 3 billion per year in Net Positive investments. I have no doubt that this deal, which was signed at the beginning of the new civil year, is the first swallow for many more investments that we intend to promote in the coming year. “