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Oil Refineries in $900M financing plan
Company signs agreement in principle to receive $600 million in financing from syndicate of banks in bid to implement its strategic plan, service other capital needs for four years
Reuters
Oil Refineries said on Sunday it secured a $900 million financing framework to implement its strategic plan and service other capital needs for four years.
As part of the framework, the company signed an agreement in principle to receive $600 million in financing from a syndicate of banks, led by Bank Hapoalim, Israel's
second largest bank.
In addition, the US Congress approved a $300 million backing from the Export-Import Bank, to finance equipment to be purchased outside of Israel.
The financing plan was approved by the company's board mainly to fund its $500 million hydrocracker project as well as refinance its debt.
The hydrocracker, expected to be operational in the first half of 2012, will produce mainly diesel and jet fuel. It will enable the production of more distillates with higher added-value from every barrel of oil.
"This is the largest investment plan being undertaken in Israel this year, strengthening not only the company but the whole Israeli economy," Oil Refineries Chairman Yossi Rosen said in a statement.
He said the company was well positioned to start receiving natural gas after investing $45 million in preparations.
"The recovery of the global economy will be a key factor in driving increasing demand," Oil Refineries Chief Executive Yashar Ben Mordechai said. "ORL is preparing itself to maximize on this opportunity."
Oil Refineries, Israel's biggest refinery, is controlled by holding company Israel Corp.
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