Generation Capital Raises ₪1.2 Billion in Bond Offering for Energy Acquisition
Translated & summarized from Calcalist by baba
Generation Capital raised 1.2 billion shekels in a bond offering to fund its acquisition of Shikun & Binui Energy. The unsecured, CPI-linked bonds mature in eight years and were rated A+ by S&P Maalot. The acquisition, valued at 4.45 billion shekels, is expected to be completed in 2027 pending regulatory approval. The fund also reported a strong financial performance in the first half of 2026.
The story in 5 lines · by baba
- Generation Capital raised ₪1.2 billion in a new bond series to finance its acquisition of Shikun & Binui Energy.
- The bond offering received bids totaling ₪1.6 billion, indicating strong investor demand.
- The acquisition of Shikun & Binui Energy is valued at ₪4.45 billion and is expected to close in 2027.
- The new bond series is unsecured, linked to the consumer price index, and rated A+ by S&P Maalot.
- Generation Capital reported a pre-tax profit of over ₪1 billion in the first half of 2026.
Infrastructure investment fund Generation Capital has successfully raised 1.2 billion shekels in the institutional phase of a new bond series (Series E). The offering received bids totaling 1.6 billion shekels. This significant debt raise is part of the fund's preparation to complete its acquisition of Shikun & Binui Energy.
The new unsecured, CPI-linked bond series was issued with an annual interest rate of 3.48% and an average life of approximately eight years. Repayments are scheduled in ten installments between 2030 and 2039, with annual interest payments commencing in December 2027. The series has been assigned an A+ rating with a stable outlook by S&P Maalot.
The public phase of the offering is expected to occur in the coming days. This bond issuance follows a 1-billion-shekel stock offering by Generation Capital in June and the introduction of institutional investors into its subsidiary PowerGen, the fund's energy arm. These actions are all in preparation for financing the acquisition of Shikun & Binui Energy.
The acquisition, agreed upon in late July for 4.45 billion shekels, was previously the subject of a dispute with Keystone Fund, which submitted a competing bid but was ultimately unsuccessful. The deal's completion is anticipated during 2027, pending regulatory approvals from bodies including the Competition Authority and the Electricity Authority, which had previously expressed reservations about potential impacts on electricity market competition.
In related financial news, Generation Capital concluded the first half of 2026 with a pre-tax profit exceeding 1 billion shekels and a net investment cash flow of 112 million shekels, a roughly 70% increase from the same period last year. The fund's investment portfolio is valued at 5.8 billion shekels, with equity totaling approximately 4.9 billion shekels. The fund aims to distribute dividends of about 100 million shekels in 2026.
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