Bank Hapoalim is expanding its activity in financing energy deals. The bank will provide $85 million in financing for the US energy operations of Stark Power.
The financing agreement provides the company with financial flexibility to expand its operations and finance the acquisition and construction of additional projects at various stages.
The credit facility, led on behalf of the bank by Shahaf Gilad, is designated for ongoing operations and, in the first stage, for the acquisition of an asset that includes a power plant and an energy storage project.
The financing agreement includes a loan facility of up to $60 million and a guarantee facility of $25 million. According to the agreement, the guarantee facility can be increased, while utilizing the loan facility, up to an amount of $85 million.
Stark Power was founded by former Enlight and Nofar Energy executives: Nadav Tenne, Shahar Gershon, Zafrir Yoeli, Michael Avidan, and Yosef Lefkovitz. It operates in the development of energy infrastructure and data centers in the US.
Beyond financing the current transaction, the agreement significantly increases the company's competitiveness and financial flexibility in the US, allowing it to operate from the acquisition of projects in advanced development and financing of construction stages prior to financial closing, up to the acquisition of energy assets already in commercial operation.
Shmulik Arbel, head of the Business Division at Hapoalim, said: "The bank sees great importance in accompanying leading Israeli entrepreneurs as they break into global markets. This is a very significant transaction that represents a step forward in the American market."
Stark Power CEO Michael Avidan said: "The facility provided to us by Bank Hapoalim allows us to optimally finance the current transaction we are advancing and significantly increases our capabilities ahead of upcoming transactions."