Discount Bank Pledges $280 Million to PowerGen Renewable Projects

Discount Bank has finalized a significant financing agreement with PowerGen, a subsidiary of the Generation Capital fund, totaling approximately 1.1 billion shekels (around $280 million USD). This funding is earmarked for the development and construction of over 20 renewable energy projects across Israel.

The latest agreement includes an initial 590 million shekel financing deal, building upon a previous 330 million shekel agreement from March. In total, about 920 million shekels are allocated for long-term project financing, supplemented by an additional 160 million shekels in credit facilities. These funds will support the creation of hybrid projects, combining solar power generation with energy storage facilities.

The projects are expected to generate over 120 megawatts of solar energy and approximately 1 gigawatt-hour of storage capacity. They are slated to connect to the national grid within the next two years. The electricity produced and stored will be sold entirely to Bezeqjenn under a 20-year power purchase agreement. Bezeqjenn, jointly owned by PowerGen and Bezeq, holds about a 33% share of the Israeli electricity market.

Hila Eran-Zik, Senior Vice President and Head of the Business Division at Discount Bank, expressed pride in deepening the strategic partnership with PowerGen, highlighting the bank's commitment to supporting sustainability and innovation. Dan Klinberger, CEO of PowerGen, noted that the financing reflects the trust financial institutions place in the company's strategy and execution capabilities, signaling a period of significant growth and expansion for PowerGen's renewable energy assets.