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Ormat Technologies has secured $100m loan for capital needs on growth plans

Dora 2 geothermal power plant, Turkey (source: Ormat)
Alexander Richter 27 Mar 2018

Ormat Technologies has entered into a loan agreement with Migdal Group in Israel, for the amount of $100 million to fund capital needs to support the company's growth plans.

In a release todya, Ormat Technologies, Inc. announced that it has entered into a loan agreement with affiliates of the Migdal Group, one of Israel’s leading insurance companies and institutional investors, to provide the Company with a $100.0 million senior unsecured loan.

The Loan will be repaid in 15 semi-annual payments of $4.2 million each, commencing on September 15, 2021, and a final payment on March 15, 2029 of $37 million. The average duration of the Loan is 7 years. The Loan bears interest at a fixed rate of 4.8% per annum, payable semi-annually, subject to adjustments in certain cases. Ormat intends to use the proceeds of the loan to fund its capital needs to support its growth plans.

“Ormat’s financial strength and leadership position is giving us increased access to capital at attractive terms, enabling us to execute our long-term growth strategy,” commented Doron Blachar, Ormat’s Chief Financial Officer.

Source: Company release