The renewable energy company Prime Energy, which engages in the initiation, development, establishment, operation and maintenance of systems for generating electricity from solar energy sources using photovoltaic technology, reported today (Sunday) that it signed an update to the letter of intent with Bank Leumi, which includes financing for the furrow project in the total amount of 22.5 megawatt (DC) and for additional solar projects in Israel amounting to about 150 megawatt (DC).
In total, it is a volume of 172.5 megawatts (DC), while the volume of financing from Bank Leumi and a consortium of financiers led by the bank will amount to approximately NIS 300 million.
In light of the company’s intention to move forward with the start of work to establish dual-use projects for which production licenses were obtained from the Electric Company, and since the original letter of intent linked the execution of all of the company’s dual-use projects under one backlog, the company turned to Bank Leumi, which agreed to reduce the validity of the letter of intent, and to proceed with financing Establishment of a significant backlog of projects for which the company received positive or partly positive answers. In addition, the funding for the furrows project was added to the scope of the agreement.
The company is expected to expand the financing to additional projects that have received and/or will receive approval from part of the Electric Company, subject to the approval of the bank and the financing consortium.
Prime Energy’s chairman and controlling owner, Yaron Kikoz, noted that “the financing agreement is another milestone in strengthening the financial strength of Prime Energy. The agreement reflects the expression of confidence on the part of Bank Leumi in the company’s projects in Israel with a guaranteed rate of about 18 AJ per kilowatt linked to an index and in the agreement with the Electric Company for about 15 years and the significant potential of the company. The updated financing agreement will allow the start of work on projects that received production licenses, when the company has all the equity required to finance the construction of the projects.”