Bank Discount to Provide 1.1 Billion Shekels in Financing to PowerGen
The bank will provide PowerGen, part of the Generation Capital group, with significant financing facilities for the construction of over 20 hybrid energy projects to be connected to the grid within two years.
Bank Discount will provide PowerGen, part of the Generation Capital group, with financing facilities totaling approximately 1.1 billion shekels to establish a portfolio of renewable energy projects across the country.
The deal includes a new financing agreement of approximately 590 million shekels, supplementing a previous agreement signed last March for over 330 million shekels, alongside additional corporate credit facilities of 160 million shekels.
The capital raised will support the construction of more than 20 hybrid projects, combining solar power generation and energy storage. The total capacity will exceed 120 megawatts of solar power and about 1 gigawatt-hour of storage, expected to be connected to the grid within the next two years.
All electricity produced and stored will be sold to BezeqGen, an electricity supply company jointly owned by PowerGen and Bezeq, under a 20-year power purchase agreement. BezeqGen currently holds a market share of approximately 33% of household and small business customers in Israel.
Bank Discount's business division emphasized that the deal reflects the bank's commitment to leading financial initiatives that support sustainability and increase the supply of clean electricity. PowerGen noted that this move will allow the company to double its connected energy assets in a short period.
Hila Eran Zik, Senior Vice President and Head of the Business Division at Bank Discount, stated:
"We are proud to deepen our strategic partnership with PowerGen. Supporting large-scale projects is a key pillar in strengthening the country's energy infrastructure and increasing clean electricity supply. We will continue to promote projects with significant value for the economy and the environment."
Dan Klinberger, CEO of PowerGen, added:
"We are in the midst of a significant construction period, during which we expect to double our connected renewable energy assets. Our project pipeline is substantial across all segments in Israel and Europe. I thank the Bank Discount team for their professionalism and trust, and I look forward to our continued collaboration."
