Israeli insurance giant Migdal to invest over $355 million in renewable energy company Doral
The deal will include the acquisition of 20% of Doral, extension of credit facilities, and direct investments in projects
Migdal Insurance, Israel’s largest insurance company and pension manager, will invest approximately $110 million in renewable energy company Doral LLC, in exchange for 20% of the company.
As part of the deal, which is still being formulated, Migdal will also participate in the first stage (480 MWdc) of Doral's mega solar project in Indiana with an estimated investment of $100 million. Doral 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 capacity estimated at 1.65 gigawatts. This is set to be one of the most significant photovoltaic projects in the U.S.
In addition, Migdal will provide Doral with a credit facility of an additional $130 million on terms to be set forth in definitive agreements. 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 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 Doral Group is a publicly traded company on the Tel Aviv Stock Exchange.
“The investment partnership strengthens Doral's competitive advantage in the U.S. as it expands its 3,000-megawatt renewables portfolio," said Nick Cohen, President and CEO of Doral. "Our renewables projects platform is aligned with the market drive towards carbon neutrality, and is focused on locating and harvesting unique high-quality renewable energy projects from scratch in the most attractive markets in the U.S., such as PJM."
