A Substantial Transaction in the Renewable Energy Market: It’s official - Migdal, a Prominent Israeli Insurance Company, Will Invest Approximately $355 Million in Global Energy Generation LLC (Doral LLC)

A substantial investment transaction for Migdal Insurance, Israel’s largest insurance company, and pension manager with assets under management of 90 billion dollars, in Global Energy Generation LLC (Doral LLC) was finalized on Tuesday.

The transaction outline includes, inter alia, an investment of approximately $110 million, in exchange for 20% of Doral LLC.

At the closing date, Migdal shall invest an amount of approximately $70 million, out of which approximately $20 million shall be used to purchase shares and repayment of certain outstanding shareholders loans from existing shareholders. An additional amount of $40 million shall be invested in Doral LLC upon the achievement of certain pre-defined milestones.

It was further agreed that in the event of an IPO of Doral LLC at a minimum valuation ranging between $1.5 – 2 billion, Migdal shall invest in Doral LLC an additional amount of $15 – 20 million on account of its existing interests in the company, all subject to the arrangements set forth in the investment agreement.

As part of the deal, Migdal Insurance will also participate in the first stage (480 MWdc) of Doral LLC's mega solar project in Indiana, with an estimated investment of $100 million. Doral LLC will retain its majority holding position and control of the project.

The Indiana solar project, which is expected to enter construction in 2021, covers over 12,000 acres, and has a total dc capacity estimated at 1.65 gigawatts. This is one of the most significant photovoltaic projects in the U.S.

The first phase of the project has already received most of the required approvals. It signed a PPA (Power Purchase Agreement) with AEP Energy Partners Inc., a subsidiary of American Electric Power (Nasdaq: AEP) and one of the largest electric energy wholesale suppliers in the U.S. The agreement is one of the largest solar power purchase agreements in the PJM market.

In addition, Migdal Insurance will provide Doral LLC with a credit facility of an additional $130 million. Migdal’s investment will total approximately $355 million. The investment scope may be increased by hundreds of millions of dollars in the foreseeable future as more projects mature.

Doral LLC

Doral LLC, the entrepreneurial platform of Doral Renewable Energy Resources Group Ltd (Doral Group) in the U.S, was founded by Doral Group and Clean Air Generation LLC. Doral LLC currently has over 3 GWdc of projects under development and 30,000 acres of land control, mainly in Midwest and Mid-Atlantic U.S. The management team of Doral LLC includes experienced multidisciplinary individuals who worked together for many years in the renewables industry in the US.

Doral Group is a publicly traded company on the Tel Aviv Stock Exchange in Israel (DORL) and is a global renewable energy leader, holding hundreds of long-term revenue generating renewable energy assets. With over 6 GWdc under development, Doral Group is active, inter alia, in Israel, Europe, and the United States. Doral Group is also emerging as a worldwide leader in the field of solar + storage solutions, following its win of Israel’s biggest solar + storage tenders to build approximately 750MW(dc) + 1,400MWh of storage facilities in Israel.

Migdal Insurance is Israel’s largest insurance company and pension manager with AUM of 90 billion dollars, 2.3 million customers and more than 4,900 employees. Migdal has a local corporate rating of Aa1. Migdal was Israel’s first institutional body to announce the adoption of an ESG (Environmental Social and Governance) investment policy over six months ago. Migdal has already made several investments in the field, including a NIS 1 Billion investment in Copenhagen Infrastructure Partners IV, a Danish Fund which is active in renewable energy projects; a $100 Million investment in BayWa Renewable Energy, an international growth company operating in renewable energies and a unique investment of $60 Million in the AMUNDI PLANET Fund which was established in partnership with large global institutional entities to develop “green” bond markets in emerging countries.


Maya Ziv Wolf
Corporate Media Relations

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