Two large projects by renewable energy company Enlight (TASE: ENLT) received a strong boost today. The company reported to the Tel Aviv Stock Exchange this morning that it had signed memoranda of understandings for the financing of the wind energy projects "Genesis Wind" on the Golan Heights and "Yatir" in the south of Israel.
The two projects, with an aggregate output of 220 megawatts, are in advanced stages of development. The memoranda of understandings were signed with a consortium of leners led by Bank Hapoalim (TASE: POLI). The total financing for the projects will be NIS 1.1 billion.
The memoranda were signed after the High Court of Justice rejected a petition by the Society for the Protection of Nature in Israel two weeks ago. The Society sought to delay approval of the wind turbine farm on the Golan Heights because of fears that it would harm the population of eagles and other birds in the area.
Under the terms of the memoranda, each project will be awarded non-recourse financing amounting to 80-85% of the total investment, estimated at NIS 1 billion for Genesis Wind and NIS 170-190 million for Yatir. The loans will be for 21 years, covering a construction period of two years and a further 19 years from the date of receipt of a permanent license.
The signing of detailed, binding financing agreements is subject to, among other things, completion of due diligence examinations by the bank and receipt of required approvals for the projects. Enlight warns that there is no certainty that regulatory approvals will be obtained.
Enlight's share price responded to today's news with a rise of 2%, making it a rise of 64% in the past six months, and giving the company a market cap of NIS 2 billion.
Published by Globes, Israel business news - en.globes.co.il - on July 2, 2019
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