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Leumi Wins Awards

'Project Finance' Magazine's prestigious prize awarded to 'Edeltech', 'Zorlu' and 'Leumi' for private power stations financing deal

The prize was awarded at a gala event in London for a financing deal of power stations at 'Makhteshim' and 'Agan' plants totaling about NIS 1.3 billion

The "Power Deal of the Year" Prize, granted annually by the international magazine 'Project Finance', was awarded last week to the deal financing the setting up of private power stations being built by 'Ramat Negev Energy' and 'Ashdod Energy', of the 'Edeltech Group', at the 'Makhteshim' and 'Agan Chemicals' plants. The prize was awarded at a gala event featuring the outstanding financing deals made in Europe in the past year.


The deal, led by Bank Leumi, totals approximately NIS 1.3 billion. In addition to Leumi, 'Clal Insurance', 'Psagot' and 'Menora-Mivtachim' participated in the financing.


Signed last August, the financing deal will enable the establishment of two private cogeneration power stations: the first, with a capacity of 110 megawatts, is being built by 'Ramat Negev Energy' in the 'Makhteshim' plant at Ramat Hovav, and the second, with a capacity of 55 megawatts, is being built by 'Ashdod Energy' in the 'Agan Chemicals' plant. The power stations are being built by the construction contractor 'M+W Israel' and will become commercially operational in the second half of 2014.


The shareholders in both companies are the 'Edeltech Group' (58%) and the Turkish concern 'Zorlu' (42%). Both are also partners in the 'Dorad' project to build the power station in Ashkelon with a capacity of 840 megawatts. At the same time, the Group is finalizing the financing for two further cogeneration power plants – 'Solad Energy', a 77-megawatt power station  at the factory site of 'CHS Israel' (formerly 'Solbar'), and 'Tamar Energy', a power station with a capacity of 160 megawatts at the factory site of 'Haifa Chemicals' in the Rotem Plain.


At a ceremony held at the weekend in London, the companies were represented by CEO of 'Ashdod Energy' and 'Ramat Negev Energy', Mr. Doron Ezra, and VP Finance, Mr. Saguy Landau. The financing bodies were represented by Mr. Uri Goldstein from the Corporate Division at Bank Leumi.


Doron Ezra stated: "The prize marks the long journey we have had to make to finance the projects. Financing two projects at the same time called for hard, creative and complex work by us and by the financing bodies. The prize awarded today is a tribute to the parties that overcame many obstacles, and to many others who helped us execute the projects".


Saguy Landau, who is also the Deputy CEO of 'Edeltech', noted that: "Financing the project was structured in an innovative way so that one consortium of lenders provided financing to two projects although they were completely separate – both geographically and in terms  of agreements with an 'anchor customer' and end–customers".


Bank Leumi claimed: "We attach great importance to the financing of major projects in this field, including the two new plants, and to the fruitful cooperation with the important institutional entities taking part in financing them. The cooperation between the Bank and the institutional entities in this deal demonstrates the potential and capability embodied in the correct consortium of investors at a time when capital is scarce."


Attending the ceremony were also the attorneys of the companies, Amit Crispin and Ariel Rosenberg from the 'Goldfarb-Zeligman' law office, and the financing bodies' attorneys, Adam Eitan and Mark Phillips from the law office of Herzog-Fox- Neeman.