HSBC will organize the $300 million financing for the 560-MW power station.
HSBC plc (NYSE;HBC; LSE:HSBA) will organize the $300 million financing for the 560-megawatt private power station that Dalia Power Energies Ltd. plans to build at Zafit in the Negev. The financing agreement with HSBC follows a number of agreements that the company has signed recently for the project.
Dalia Power has signed an memorandum of understanding (MOU) with Siemens AG (NYSE:SI; XETRA:SIE) for the supply of equipment and to be the chief contractor, as well as providing maintenance services for 15 years. Siemens also has an option to become a partner in the project. The companies expect to finalize the contract by year-end.
Dalia Power CEO Eitan Meir said, “The agreement with HSBC is an important milestone for the building of the power station. It underscores the importance of the power station and it is a vote of confidence in the project.” He added that the company will sign a contract with EcoTrade in a few days, as part of a UN resolution to reduce emissions of greenhouse gases.
Published by Globes [online], Israel business news - www.globes.co.il - on October 17, 2007
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