Prior to the IPO: Dalia Energies raises NIS 1.15 billion in bonds
30, December 2020

The interest rate to be borne by the bonds, which have a 5.9-year maturity, will stand at 1.8%. The raise was made in preparation for the first public offering, which is planned for 2021

Dalia Energies, which owns one of the largest private power plants in Israel for electricity generation, yesterday successfully completed the raising of NIS 1.15 billion in private bonds, ahead of an IPO planned for 2021. As part of the offering, it was determined that the interest rate to be borne by the bonds, which have a 5.9-year maturity, will be 1.8%.

Institutional entities such as Clal Insurance, Harel Insurance, Psagot, Phoenix, Amitim and the Moore Investment House participated in the raising of Dalia Energies. The bond raising will be used by the company for early repayment of the loans and capital notes taken more than a decade ago, with the construction of the power plant.

The raise was led by Leumi Partners Underwriters, and IBI, Discount Capital, Barak Capital and Epsilon Underwriting participated in it. The IPO’s financial advisor was Giza Singer Even. The attorneys for the offering were Iris Cibulski – Havilio, Amir Goddard and Matan Daskel, from the law firm Agmon & Co., and the accountants were Hai Lagziel and Ely Peterman from the accounting firm Somekh Chaikin.

Oved Debi, CEO of Dalia Energy Companies, said following the raise: “As part of the preparations for the issuance of the company’s shares to the general public in early 2021, it was decided to raise bonds to repay the capital notes and loans in a way that simplifies the company’s capital structure, and for significant savings in financing costs and improved cash flow.”

Dalia Energies’ bonds were raised in preparation for the first public offering (IPO), which is planned for 2021. The company is preparing to carry out the offering at an estimated value of NIS 4.5-5 billion – which may include it in the prestigious Tel Aviv 35 (+ 0.22% 1503.32) index.

Dalia’s offering is expected to bring significant value to its shareholders. Those standing to gain the most are the Mishkei Hakibbutzim (Agricultural Cooperative Association), which hold 41% of the company’s shares. Mishkei Hakibbutzim invested NIS 100 million in equity in Dalia shares, which will be worth NIS 1.5 billion after the offering.

Among the other beneficiaries is George Horesh, an importer of Toyota to Israel who holds 20% in Dalia Energies (direct and indirect holdings). Horesh purchased the shares with an investment of several hundred million shekels, at a value of 2-2.5 billion shekels. Horesh is expected to make twice as much profit on its investment. Israel Infrastructure Funds (IIF), which holds 5%, is also expected to make a profit, albeit a more modest one. IIF invested in Dalia about four years ago, after its previous investment in the company was realized at a high profit.

In addition, the expected IPO will benefit private entrepreneur Zvi Barak, Mexican-Jewish entrepreneur Daniel Jusidman and the Teachers Training Funds for teachers and kindergarten teachers. This group holds about 20% of Dalia Energies. Another major shareholder is Hiram-Epsilon, controlled by Horesh and in partnership with Dr. Eli Barnea, Moshe Lassri and Yigal Porat, who are among the power plant’s founders. (Hebrew version)