MRC obtains NIS 1.65b loan for Alon Tavor acquisition

Alon Tavor power station Photo: Yossi Zamir, IEC

The MRC consortium obtained a loan from a consortium led by Bank Hapoalim on limited recourse terms at 2-3% above the Euro Swap interest rate.

MRC Group, which last July acquired the Alon Tavor power plan from Israel Electric Corporation (IEC) for NIS 1.9 billion, has now completed financial closure for the project. MRC is owned by Mivtach Shamir (35%), controlled by Meir Shamir; Rapac Energy, controlled by Tel Aviv Stock Exchange-listed company Rapac Communication and Infrastructure (31%); Generation Capital (31%); and China Harbour Engineering Company subsidiary Pan-Mediterranean Engineering (PMEC).

A financial consortium led by Bank Hapoalim granted MRC a NIS 1.65 billion loan, plus a NIS 250 million line of credit (including NIS 135 million in guarantees).The loan, which was granted on limited recourse terms at 2-3% above the Euro Swap interest rate, will enable MRC to complete the deal with IEC in the coming days. The duration of the loan is fourteen years and three months, and it will be repaid in quarterly payments of principal and interest. Completion of the financing agreement is contingent on a number of conditions, among other things completion of the deal.

Four more power stations to be sold

The sale of Alon Tavor is the first of five power stations that IEC undertook to sell under the company's reform agreement from July 2018, at the rate of one power station a year. The next power station to go on the auction block is the one at Neot Hovav.

Published by Globes, Israel business news - en.globes.co.il - on November 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Alon Tavor power station Photo: Yossi Zamir, IEC
Alon Tavor power station Photo: Yossi Zamir, IEC
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