OPC Energy Secures $1.8 Billion Financing for New Power Plant
OPC Energy secures financing for $1.7-1.8 billion power plant

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OPC Energy Ltd. has secured a financing agreement with Bank Leumi for its Hadera Expansion project, estimated at $1.7-1.8 billion. The bank will fund approximately 80% of the costs, with a loan term of 6-10 years. The project aims to develop a natural gas-fired power plant with a capacity of about 850 megawatts.
- 01OPC Energy will receive financing covering approximately 80% of the project costs from Bank Leumi.
- 02The total construction cost for the Hadera Expansion project is estimated at $1.7-1.8 billion.
- 03The loan will have a term of 6-10 years with interest rates tied to the Prime rate plus a margin of 0%-0.7%.
- 04Solel Boneh has been appointed as the Engineering, Procurement and Construction (EPC) contractor for the project.
- 05The new power plant will generate around 850 megawatts and is expected to operate for 25 years under availability payments from the System Operator.
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OPC Energy Ltd. (TASE:OPCE) announced a significant financing agreement with Bank Leumi for its Hadera Expansion project, which is projected to cost between $1.7 billion and $1.8 billion. The financing will cover approximately 80% of the construction expenses, with a loan term ranging from 6 to 10 years. Interest rates will be based on the Prime rate, plus a margin of 0% to 0.7%, depending on the loan duration. The project aims to develop a combined cycle natural gas-fired power plant with a generation capacity of about 850 megawatts, situated adjacent to the existing Hadera power plant. Solel Boneh will serve as the EPC contractor, collaborating with an international contractor for the engineering, procurement, and construction phases. The completed facility is expected to sell electricity in the SMP market and receive availability payments from the System Operator for 25 years. OPC Energy has shown strong financial health, with liquid assets surpassing short-term obligations and a current ratio of 4.01. Over the past year, the company's shares have increased by 192%, although they are currently considered overvalued according to InvestingPro analysis.
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The development of the new power plant is expected to enhance energy generation capacity in Israel, contributing to energy security and potentially lowering electricity costs.
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