Bank Hapoalim Provides Stark Power $85 Million Financing Facility

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

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

The financing agreement is finalized, though the project acquisitions are not yet complete. Stark Power stated the facility will also support further U.S. deals, including purchasing operational energy assets, projects in advanced development stages, and financing construction before separate project financing is arranged. This approach will allow the company to advance deals without solely relying on its own capital for each purchase or construction phase, preserving 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 U.S. 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 financing and significantly enhances their capacity for future transactions, enabling faster action and more efficient capital use.

Shmulik Arbel, Deputy CEO of Bank Hapoalim, highlighted the bank's commitment to supporting leading Israeli entrepreneurs in global markets. He noted this deal is a significant step for Stark Power in the U.S. market and showcases the expertise of the bank's infrastructure and project finance sector. Bank Hapoalim is currently pursuing additional energy financing deals in the U.S. and Europe and will continue to support growing Israeli companies.