Doral Boosts U.S. Stake to 53% with $415 Million Investment in Renewable Energy Subsidiary

Israeli renewable energy company Doral is significantly expanding its presence in the U.S. market by investing $415 million in cash and allocating shares from its Israeli parent company. This move increases Doral's ownership in its American subsidiary, Doral LLC, from 26% to 53.3%. The company expects this to boost its annual EBITDA by 620 million shekels.

The investment funds will be used to finance Doral LLC's development projects in the U.S. without the need for additional capital raising. The transaction involved a triangular structure where 400 million shekels raised from Israeli investors in the parent company are directly invested in the U.S. subsidiary, diluting other partners' shares with their consent. Key partners include the Dutch pension giant APG, holding 35.3%, and Migdal with 11.4%.

Additionally, Doral is completing the acquisition of all shares held by Nick Cohen, CEO of Doral LLC and original U.S. partner. Cohen will receive tens of millions in cash and hundreds of millions in shares of the publicly traded Israeli parent company, exchanging private company holdings for public ones. Former Mossad chief Yossi Cohen, a director of the U.S. subsidiary with options for 3% of its shares, is also expected to benefit.

The company is simplifying its capital structure by canceling previous loan-like mechanisms. Doral's CEO, Yoni Hantsis, described the move as strategic, strengthening the company's financial resilience and simplifying ownership to enable further financial initiatives.

The U.S. energy market is highly demanding due to expected growth in data centers and industrial revitalization, with electricity demand forecasted to rise 178% by 2050. Solar energy leads the renewable sector, supported by advanced solar panel and storage technologies that address previous challenges of supply-demand timing. Doral plans to build a massive solar and storage portfolio with up to 7.4 gigawatts of production capacity and 1.1 gigawatt-hours of storage.

These projects qualify for U.S. tax incentives under the 'safe harbor' rule, requiring construction to start by July 4, 2026, or grid connection by December 2027. The funds will also fully repay a previous Apollo loan, freeing Doral LLC to pursue aggressive investments in the U.S. market.

Doral anticipates a direct accounting profit between 80 and 120 million shekels to appear in its Q2 2026 report, reflecting the increased U.S. stake and project maturity.