Major Financing Deal Signed for Sorek Power Station Construction

A significant financial closing worth approximately NIS 5.6 billion has been completed for the Sorek power station project. The financing, which totals NIS 4.8 billion, is being led by Mizrahi Tefahot Bank and Discount Bank, along with other institutions including Meitav, International, Menora, and Migdal. The deal was finalized on the evening of its reporting, having been initially revealed earlier that day. The Sorek power station will have a capacity of about 850 megawatts and is slated to begin commercial operation in November 2029, marking it as one of the largest stations constructed in recent years. The project developers had already purchased turbines and power generation systems from Siemens over a year ago. To reduce reliance on foreign construction contractors, the station's construction will be managed internally by a joint venture of Adlet and Keystone Power, with a local subcontractor. The partnership has entered into an execution agreement with the Issa Khoury Group, which will serve as the main subcontractor for construction. Representatives from the General Accountant's office at the Ministry of Finance were present at the signing, alongside lenders and station owners. The concessionaire for the project is "Sorek Power Station Partnership," currently held by the Adlet and Menora Mivtachim groups. Keystone Power, the energy arm of Keystone Infra Group, is providing approximately 40% of the required equity through a convertible loan, with an option to convert this loan into a stake in the concessionaire. This arrangement would see Adlet retain 40% of equity rights and 51% of voting rights, while Menora holds the remaining 20% of equity. Energean will supply the natural gas for the station under a 15-year agreement signed in September, for up to 7.7 billion cubic meters valued at approximately $1.4 billion, with supply commencing upon the station's commercial operation.