OPC Energy Secures NIS 600 Million through New Series E Bonds to Boost Growth Strategy

OPC Energy Expands Financial Resources Through New Bond Issuance

OPC Energy Ltd., a prominent independent power producer operating in Israel and the United States, has successfully issued NIS 600 million of its new Series E bonds as part of its long-term financing strategy. This move marks a significant step in the company’s ongoing efforts to secure financial flexibility and support its ambitious investment plans in both markets.

The Series E bonds come with an attractive annual coupon rate of 4.56%, a duration of 7.4 years, and an effective spread of 96 basis points. This issuance not only demonstrates OPC Energy's robust financial position but also underscores its commitment to expanding its energy portfolio focused on both natural gas and renewable sources.

According to Giora Almogy, CEO of OPC Energy, the company is steadfast in executing its long-term growth strategy, which features a robust pipeline of energy projects. Almogy emphasized that their diverse and high-quality asset base, combined with ongoing construction projects and development initiatives, positions OPC Energy favorably to capitalize on emerging growth opportunities. This bond issue will provide the necessary capital to continue advancing their investment plans and generating sustainable long-term value for shareholders.

Ana Berenstein Shvartsman, the CFO, elaborated that the decision to issue NIS 600 million in long-term bonds further enhances the company’s financial maneuverability and bolsters its investment agenda. She noted that this financial strategy aligns with OPC Energy’s disciplined approach to capital management, aiming to maintain a balanced funding structure while ensuring access to diverse and long-term capital sources.

These Series E bonds have already been listed for trading on the Tel Aviv Stock Exchange, thereby improving liquidity and expanding the company’s investor base. OPC Energy is known for its role in the energy transition, delivering electricity efficiently and in an environmentally friendly manner. The company seamlessly integrates highly efficient natural gas systems with renewable energy initiatives such as solar and wind, aiming to meet the evolving energy demands of both their Israeli and U.S. markets.

In Israel, OPC is distinguished as the first and leading private electricity producer, meeting various energy needs through integrated solutions directly from generation sites to on-site solutions tailored for customers. The company is actively broadening its generation portfolio, not only enhancing its infrastructure but also strategically advancing a growing list of renewable and natural gas projects designed to support the evolving needs of the Israeli electricity sector.

In the United States, OPC operates through the CPV Group, which boasts over 25 years of expertise in developing and operating low-emission power generation and renewable energy projects. CPV is focused on leveraging its solid experience to further enhance its current portfolio, which includes approximately 15 gigawatts of renewable and natural gas projects.

As OPC Energy continues to broaden its footprint in both the Israeli and American markets, the latest bond issuance marks a critical milestone in the company’s investment strategy. The capital raised will facilitate the advancement of their development pipeline and ensure that the company remains positioned to meet the rapidly increasing energy demands while remaining committed to sustainability and efficiency.

In summary, OPC Energy’s NIS 600 million Series E bond issuance not only fosters financial security but also plays a pivotal role in propelling the company toward its strategic objectives in the competitive energy sector. With a clear roadmap for growth, backed by substantial financial resources, OPC Energy is poised for a promising future in energy production and sustainable development.