slowdown?
Doral-USA raises $500 million from Apollo
The fundraising at a value of 1.5 billion dollars (before the money) Bank of America expressed a willingness to serve as a tax partner for the entire Indiana project in an estimated amount of 600 million dollars
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18/10/2022
Tuesday, October 18, 2022, 09:59 Updated: 10:15
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The launch of Doral's project in Indiana, in the presence of company executives, the governor of Indiana, the Israeli ambassador to the US and the consul in Chicago (Photo: Robert Ridge)
Doral reports today that its US subsidiary, Doral Renewables LLC ("Doral LLC"), has entered into an agreement with funds managed by the international investment giant Apollo to raise up to 500 million dollars through the issuance of the convertible notes. The convertible notes into ordinary shares of Doral LLC by value of 1.5 billion dollars before the money, that is, about NIS 5.25 billion. Doral LLC intends to use the money to finance renewable energy and energy storage projects, which it is initiating in the US.
Bank of America, which was involved in the formation of the deal, expressed its willingness to serve as a tax partner for the entire Indiana project, with a total amount estimated by the company to be approximately $600 million, subject to meeting milestones, due diligence, underwriting and receiving the relevant approvals from the companies.
As a reminder, in June 2022 the company reported that a tax partner agreement was signed with the bank in the amount of approximately 175 million dollars for the Indiana North project, which is the first part of the Indiana project and is expected to reach commercial operation next year.
In addition, the bank provided in favor of Doral LLC, standby letters of credit guarantees in the amount of approximately 75 million dollars, through a back-to-back arrangement with another bank.
Doral shares, despite declines since the beginning of 2022, turned out to be an excellent investment for those who purchased shares in 2021 (and squared their money).
Yaki Neuman, CEO of Doral (Photo: Tal Shahar)
Yaki Neuman, CEO of Doral
: "This agreement is an important and significant step in realizing Doral's strategy in the American market.
This is a huge deal for an Israeli-owned renewable energy company in the United States and an expression of confidence in the company and its activities by the leading financial institutions in their field.
Doral LLC has a significant advantage in the American market in that it initiates, develops and operates the projects itself from the beginning through locating and establishing direct contact with the land owners until the completion of the construction works of the projects and their long-term operation, thus controlling the entire value chain.
The significant amount raised will enable the establishment of the company's mature backlog of projects and other projects which the company expects will soon mature into readiness for establishment and will also support the continued accelerated growth of the company in the US.
Danny Rinot, Vice President of Business Development - North America, at Doral
: "The transaction provides further evidence of the quality of Doral USA's operations and staff.
The merger with financial entities of this magnitude will be a significant catalyst for the continued growth of the company in this market."
Corinne Steele, managing partner at Apollo
: "The investment in Doral represents an opportunity for cooperation with a leading solar entrepreneur and emphasizes Apollo's commitment to invest in companies that enable the transition to clean energy.
We believe that Doral
's focus on large-scale projects, its good relationships with landowners and its ability to execute projects position it as one of the leading companies in the market."
Watt hour energy storage.
The company's flagship project, Mammoth Solar, is located in northern Indiana on an area of approximately 50,000 dunams and is expected to produce approximately 1,600 MW (DC) of clean energy upon completion.
The expected investment in the project is about 1.6 billion dollars, and it is divided into three phases: Indiana North, whose capacity is estimated at about 480 megawatts (DC) and is expected to reach commercial operation in 2023, Indiana South whose capacity is estimated at about 400 megawatts (DC ) and Indiana Central whose capacity is estimated at 720 megawatts (DC).
Doral LLC has completed engagements in PPA agreements for the sale of electricity for the entire project, amounting to approximately 1,600 megawatts for 15 years.
About Doral LLC
:
Doral LLC is an American company owned by Doral, a corporation owned by Migdal Insurance Company Ltd. and a local partner.
Doral LLC operates in the prominent American electricity markets and has a backlog of projects in an aggregate area of approximately 405,000 dunams in 18 states in the USA.
Doral's total project backlog in the US is about 12,000 megawatts (DC) + 6,860 megawatt hours of energy storage.
About the Doral Group:
Doral is a leading global entrepreneurial company in the field of renewable energy, operating since 2007 and traded on the Tel Aviv Stock Exchange.
The company's backlog of projects around the world is about 16,000 megawatts (DC) + storage capacity with a power of about 9,000 megawatts per hour.
Alongside its extensive operations in the USA and Europe, Doral has hundreds of profitable facilities in Israel and continues to establish and implement many large projects that combine solar energy and energy storage as part of its major win in solar tenders combined with storage in the amount of approximately 714 megawatts (DC) and a storage capacity of approximately 1,443 megawatt hour minimum.
About Apollo
:
Apollo is a leading global alternative investment management corporation, traded on the New York
Stock Exchange (NYSE: APO). As of June 30, 2022, Apollo manages approximately $515 billion in assets.
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