Next week, Bank Hapoalim (TASE: POLI) subsidiary Poalim Capital Markets - Investment Bank Ltd. and Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), a unit of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), will launch a new investment fund that will invest in infrastructure and energy projects. Sources inform ''Globes'' that the new fund is considering, among other things, participating in the tender to buy the state's option to own 49% of Derech Eretz Highways (1997) Ltd., the franchisee of Road 6 (the Cross-Israel Highway) toll road.
Poalim Capital Markets, run by CEO Amir Aviv, came up with the idea of the infrastructures investment fund a year ago. Poalim Capital Markets promises to invest $20 million in the fund and Clal Insurance promises to invest $50 million. The fund has already raised $110 million, with other financial institutions, including Menorah Mivtachim Holdings Ltd. (TASE: MORA), also participating.
So far as is known, several other financial institutions that are in contact with the fund have not made any decisions about investing in it. They include DS Apex Holdings Ltd. (TASE:DSAP) and Amitim, which manages the nationalized old pension funds, and will reportedly invest in the fund.
The fund plans to raise an additional several tens of millions of dollars, to reach a total of $150 million. However, in view of the wish to exploit current market opportunities, the fund decided to launch within a few days, rather than wait to complete the fundraising.
The fund will invest in Israel and overseas, but with a definite bent to the domestic market, with at least 75% of investments to be made in local infrastructure and energy projects.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011