Bank Hapoalim Provides Stark Power $85 Million Credit Facility for US Energy Projects

Israeli energy company Stark Power has secured an $85 million financing agreement with Bank Hapoalim. The facility includes a credit line of up to $60 million and a guarantee line of $25 million, which can be expanded by utilizing portions of the loan facility.

The company, which operates in the US energy infrastructure and data center sectors, plans to use the funds for its ongoing operations, acquiring energy projects, and financing projects under construction. Initially, Stark Power intends to use part of the facility to finance the acquisition of a US asset comprising a power plant and an energy storage project, which it had reported advanced negotiations for earlier in the month.

While the financing agreement is signed, the project acquisitions are not yet finalized. Stark Power stated the credit line will also support further US deals, including the purchase of operational energy assets, projects in advanced development stages, and financing construction before separate project financing is arranged. This approach will allow the company to pursue deals without fully funding each acquisition or construction phase from its own capital, reserving funds for additional opportunities and potentially improving return on equity.

Stark Power was founded by former senior executives from Enlight and Nofar Energy. The company has previously expanded its US operations by acquiring a data center and power plant development firm. Michael Avidan, CEO of Stark Power, expressed that the facility optimizes their current deal and significantly enhances their capacity for future transactions, enabling faster action and more efficient capital use in the US market.

Shmulik Arbel, Deputy CEO of Bank Hapoalim, affirmed the bank's commitment to supporting leading Israeli entrepreneurs in global markets. He highlighted the significance of this deal for Stark Power's advancement in the US, showcasing the expertise of the bank's infrastructure and project finance sector. Bank Hapoalim is currently pursuing additional energy financing deals in the US and Europe and intends to continue supporting Israeli companies during their growth phases.