Doral signed a huge deal to partner with the insurance company Migdal in renewable energy

Doral shares rose 9.75% at the start of trading, after the company signed a huge deal to partner with the insurance company Migdal in renewable energy investments in the US. Migdal will invest $ 110 million in the purchase and allotment of 20% of the shares of Doral's American subsidiary Doral. Energy Generation (Doral Energy Generation) With the completion of the transaction, Doral's holding in the subsidiary will decrease from 50.1% to 41%, and the American partner Nicholas Cohen, who will sell shares in Migdal for $ 20 million, will hold 39% of the shares of The subsidiary.
Migdal will also invest $ 100 million directly in the first part of a huge project being carried out by Doral Energy Generation in Indiana, and is expected to hold minority shares in the first part of the project in which the American subsidiary will build a 480-megawatt solar project - with a total investment of $ 420 million. Yaki Neumann, CEO of Doral, said Migdal's investment meets all of Doral Energy Generation's equity needs in the first part of the project, and estimated that construction work will begin in the fourth quarter of 2021.
Doral Energy Generation signed an agreement two weeks ago with a leading US electricity company to sell all the electricity it will produce, and all the green certificates it will receive for renewable energy production in the first part of the project - for $ 345-315 million over the life of the agreement. According to Neumann, a few months after the start of construction work on the first part of the project, the second part of the project, which provided 750 megawatts, will begin.
Migdal will also provide a $ 130 million credit facility to Doral's US subsidiary, in accordance with principles agreed between the parties, and will allocate a total of $ 355 million (NIS 1.2 billion) to investment in Doral's renewable energy operations in the U.S. Doral's Indiana project covers an area of 50,000 dunams and its combined capacity is 1.65 gigawatts, making it one of the largest photovoltaic projects in the world and the largest initiated, established and owned by a company controlled by Israel in the United States.
Migdal Insurance was the first institutional body in Israel to announce the adoption of ESG's investment policy more than six months ago, and has so far made a number of investments in the field, including a NIS 1 billion investment in the Danish fund Copenhagen Infrastructure Partners IV, which operates in the field of renewable energies; An investment of approximately NIS 300 million in BayWa Renewable Energy, an international growth company operating in the field of renewable energies; And a unique investment of about NIS 200 million in the AMUNDI PLANET fund, which was established in partnership with large institutional entities from around the world, with the aim of developing the green bond market in emerging countries.
Earlier this week, the company announced an investment in a dedicated partnership in the fields of renewable energies, initiated by Afcon, in the amount of approximately 44 million euros. These investments join a series of investments made by the company in recent years in renewable energy shares in the total amount of NIS 3.2 billion, thus constituting the company holding the largest total volume of Israeli shares in this field. The company also works with the financing of renewable energy sources, including solar energy, wind and pumped storage, totaling about NIS 2 billion.
According to Guy Fischer, director of the investment division at Migdal Insurance: "This is the largest bilateral transaction in Israel in the field of renewable energy. Our significant investment in Doral's operations in the United States reflects our great faith in the field and specifically in Doral's operations. The investment is integrated with Migdal's strategy of investing in core infrastructure in combination with the ESG policy. As part of this policy, Migdal undertook to invest more than NIS 3 billion a year in investments in activities that lead to 0 greenhouse gas emissions, and this investment is another pillar of our activity this year.