S&P Maalot rates Ormat debt offering A+

Isaac Angel  photo: Eyal Izhar
Isaac Angel photo: Eyal Izhar

The geothermal energy company plans to raise $250 million from financial insitutions.

Geothermal energy company Ormat Technologies Inc. (NYSE: ORA) is about to raise $250 million debt from financial institutions. "Globes' reported the planned move a month ago, and now the company, headed by Isaac Angel and controlled by FIMI Opportunity Funds, has received an A+ with a stable outlook from S&P Maalot in advance of the offering.

The stated purpose of the offering is recycling of existing debt and other investments. In 2010-2011 Ormat issued non-marketable debt to the tune of $250 million to institutions, bearing annual interest of 7%, due for repayment in August 2017. The current offering will presumably be at a much lower rate of interest, of 3-5%.

Ormat, which builds and operates geothermal power plants and recovered energy generation installations, is traded in New York and Tel Aviv with a market cap of some NIS 9 billion. The company was founded by the Bronicki family, and several insitutions are currently among its shareholders, such as Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), Psagot Investment House Ltd., Excellence Investments Ltd. (TASE: EXCE), and US investment company Vanguard. FIMI became part of the controlling core of the company in 2011, and since then its share has yielded a return of over 120%.

Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Isaac Angel  photo: Eyal Izhar
Isaac Angel photo: Eyal Izhar
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