Geothermal Energy Company Ormat Performs a debt recycling process by issuing convertible green bonds. Ormat, managed by Doron Balsher, recently announced its intention to make a full early redemption of an existing series of bonds worth $ 218 million. The redemption will take place on June 27.
Yesterday, the company announced its intention to issue $ 350 million in bonds. These are convertible bonds and buyers will be given the option to purchase additional bonds for $ 52.5 million later. Every six months, in January and July, starting in 2023.
Ormat Plans to use the fundraising for several needs. Up to $ 25 million for the purchase of its own shares, an additional amount for Capped Call transactions – which include call options and de facto leaders to increase the conversion price, approximately $ 222 million to finance the early redemption it announced recently, and for general business needs. These are green bonds because the company states that it intends to allocate sums from the raising for the needs of green projects in accordance with an existing plan in the company.
Ormat operates in the electricity sector where it builds geothermal power plants and operates them on its own, and in the products sector where it builds such stations for others. At the same time, it also operates in the field of energy storage. The company is traded simultaneously on the New York and Tel Aviv stock exchanges at a market value of $ 4.2 billion.