Citigroup country manager Gus Felix, "Using Overseas Private Investment Corporation insurance in support of this loan taps a new source of funding for Israeli infrastructure projects."
The board of directors of the Overseas Private Investment Corporation (OPIC) today announced its had approved $250 million in political risk insurance for the construction of a 65-mile pipeline that will serve as the centerpiece of Israel’s natural gas system.
OPIC’s insurance will cover a proposed loan arranged by Citigroup, for the construction of a pipeline that will be used to transport natural gas produced offshore, from Ashdod in southern Israel to Dor in the north, for downstream power projects in the country. Once completed, the pipeline will be owned by the Israeli government and operated by Israel Natural Gas Lines.
According to Citigroup country manager for Israel Gus Felix, “The use of OPIC insurance in support of this loan results in attractive all in pricing and, more importantly, taps an entirely new source of funding for Israeli infrastructure projects.”
The Israel Electric Corporation estimates that annual savings from the use of natural gas electricity generation will amount to about $200 million a year, the majority of which will be passed on to end users through tariff reductions.
Published by Globes [online] - www.globes.co.il - on Monday, November 22, 2004