Sources inform ''Globes'' that Dorad Energy Ltd. is seeking to raise NIS 3.6 billion for the construction of its power station in Ashkelon. Bank Hapoalim (TASE: POLI; LSE:80OA) is expected to provide NIS 1.5 billion, and the rest is due to be provided by a syndicate of institutions led by Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS).
Bank Leumi (TASE: LUMI), Israel Discount Bank (TASE: DSCT), and Mizrahi Tefahot Bank (TASE:MZTF) may also participate in the financing.
Dorad is planning to build an 810-megawatt natural gas driven power station at a cost of $800 million. Financing will cover 85% of the construction cost. The company has a financing deal with Bank Hapoalim, subject to due diligence. A detailed contract is due to be signed by the end of this year, but sources expect that the memorandum of understanding (MOU) between the parties will be extended again because of the financial crisis.
Dorad said in response, "In view of the regulations recently published by the Public Utilities Authority (Electricity) and the removal of many obstacles from the raising of financing, Dorad is in negotiations for the final stages of closing financing of the balance needed to build the power station, and should be completed quickly."
Dorad's shareholders are Eilat Ashkelon Pipeline Company Ltd., with a 37.5% stake, Gazit-Globe Ltd. (TASE: GLOB) unit Uri Dori Engineering Works Corp. (TASE: DORI) (18.75%), Edeltech Holding Ltd. (18.75%), and Turkey's Zorlu Industrial and Powerplants Construction Co. Inc. (25%).
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008