Mizrahi Tefahot, Discount Bank to Fund Soreq Power Plant for NIS 5 Billion

Mizrahi Tefahot and Discount Bank will lead a NIS 5 billion financing deal for the construction of the Soreq power plant, one of the largest infrastructure financing transactions in recent years. The plant will be built by Adaletec, founded by Uriel Edelburg, and the insurance company Menora. The Keystone investment fund may join the project later. The deal was spearheaded by Hila Eran-Zik, head of the business division at Discount Bank, and Ophir Mordechai, head of the business division at Mizrahi Tefahot. Other institutional investors will join the two banks, notably Migdal Insurance, whose investment division is led by Erez Magdali, and the investment house Meitav, headed by Guy Mani. Notably, Bank Leumi and Bank Hapoalim, typically leaders in infrastructure finance, will not be part of this syndicate. Adaletec and Menora won the tender for the Soreq power plant in December 2024, with operations expected to commence in 2029. Typically, developers contribute 20% of the construction costs as equity. Keystone Fund, co-founded by Gil Deutsch, Roni Biron, and Navot Bar, provided an estimated NIS 300-400 million in financing for the equity portion. Under the financing terms, after the plant begins operation, the company can convert part of the loans into equity rights, up to 40% of ownership and 49% of voting rights, subject to approvals from the Electricity Authority and the Competition Authority. The Soreq power plant will be situated near the Shafdan wastewater treatment facility and the Soreq desalination facilities, with a capacity of 630-900 megawatts. Adaletec will construct and operate the plant for 25 years, after which it will transfer to state ownership. The consortium's winning bid included an availability tariff of 3.18 agorot per kilowatt-hour, a payment for readiness to operate on demand, ensuring stable income for financiers. Adaletec is currently the largest private electricity company, but could be surpassed by Generation Fund if it acquires Shikun & Binui Energy.

In a separate development, Bank Hapoalim announced in December 2025 a NIS 5 billion financing package for the Qesem power plant, led by Shamir Energy, controlled by Meir Shamir. This plant, near the Qesem interchange, is projected to generate 800 megawatts and be one of the largest in the Gush Dan region. Shamir Energy is developing it with Clal Insurance, Kibbutz Givat Hashlosha, Hazi Kugler, and Alon Polishuk. Bank Hapoalim will provide NIS 3 billion, with the remainder coming from a syndicate including Mizrahi Tefahot, International Bank, and Meitav. This debt will be denominated in Euros. Bank Hapoalim also previously led a NIS 5.7 billion financing for the Dalia 2 power plant, known as Eshkol Avshal, which will produce 850 megawatts.