Shmeltzer unit secures NIS 200m for wind farms

Shlomo Shmeltzer

Afcon will build two wind farms at Kibbutz Maaleh Hagilboa and Kibbutz Degania.

Afcon Holdings Ltd. (TASE: AFHL), controlled by Shlomo Shmeltzer, has secured NIS 200 million in financing to build two wind farms at Kibbutz Maaleh Hagilboa and Kibbutz Degania in the lower Galilee. Bank Hapoalim (TASE: POLI) is lending NIS 160 million, and the NIS 40 million balance is from Afcon's equity and owners loans.

The financing is for a maximum of two years from the start of the wind farms' operation, and will replace an 18-year loan.

The two wind farms will generate 21.25 megawatts of electricity altogether. The Kibbutz Maaleh Hagilboa wind farm will have 11 turbines and Kibbutz Degania will have 14 turbines. If Afcon meets the timetable for obtaining an electricity production license, it will receive a fixed rate of NIS 0.4851 per kilowatt. The company estimates the projects' annual revenue at NIS 22-26 million.

Last week, Afcon raised NIS 68 million in debt. Sister company Shir Shlomo Real Estate Ltd., which has two bonds listed on the TASE, today announced that it will raise NIS 180 million in debt and obtained a Baa2 rating with a "Stable" outlook from Midroog Ltd.. The company also opened its flagship Wyndham Grand Hotel in Frankfurt, Germany, after an investment of NIS 300 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Shlomo Shmeltzer
Shlomo Shmeltzer
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