Shikun & Binui Renewable Energy plans to use the loan to expand the Etgal power station in Ashdod and convert it to natural gas.
Bank Hapoalim (TASE: POLI) will head a syndicate that will lend Shikun & Binui Holdings Ltd. (TASE: SKBN) subsidiary Shikun & Binui Renewable Energy Ltd. NIS 560 million limited recourse loan for a NIS 700 million project to expand the Etgal power station in Ashdod and convert it to natural gas. Bank Hapoalim will lend NIS 300 million.
Shari Arison controls both Bank Hapoalim and Shikun & Binui.
Bank Hapoalim will serve as the senior debt organizer, lender, and lenders' representative. Shikun & Binui Renewable Energy plans to finance the Etgal project with shekel denominated project financing bearing fixed interest, which will be set on the basis of the debt's rating. Shikun & Binui's board of directors' audit committee approved the agreement with Bank Hapoalim in August.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2012
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