Bank Leumi (TASE: LUMI) wants to participate in the financing of the development of the Tamar natural gas field. Sources inform ''Globes'' that the bank has been in talks with the foreign banks financing the project: Deutsche Bank AG (NYSE: DB; XETRA: DBG), Barclays Bank plc (LSE: BARC), and HSBC Holdings plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC).
Deutsche Bank are lending to Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), which owns 28.75% of Tamar, and Barclays and HSBC are lending to Delek Drilling LP (TASE: DEDR.L), Avner Oil and Gas LP (TASE: AVNR.L), and Dor Alon Energy Exploration Ltd., which own 35.25% of Tamar between them. Noble Energy Inc. (NYSE: NBL), which owns 36% of Tamar and is heading its development, does not need separate funding for this purpose.
The foreign banks have approached Israeli financial institutions to participate in financing the short-term debt of Tamar's Israeli partners. The banks have approached, among others, Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), and Menorah Mivtachim Holdings Ltd. (TASE: MORA).
The bank's main profit from this financing should come from the project's financing stage, which has not yet begun. Isramco is due to sign an agreement for a $350 million bridge loan from Deutsche Bank by the end of the month, and a $400 million loan for the project. Avner, Delek Drilling, and Dor Gas have already signed an agreement for a $400 million bridge loan from Barclays and HSBC.
Development of Tamar, including production and delivery to Israel, is considered the largest infrastructure project in Israel in the coming years, at a cost approaching $3 billion. Gas is due to begin flowing by the end of 2012.
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2010
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