Migdal Insurance to Increase Its Investment in Doral Renewables LLC

Migdal Insurance, Israel’s leading insurance company, will invest an additional amount of up to $ 75 Million in phase II of Doral LLC’s Mammoth Solar Project in Northwest Indiana as part of its ESG Policy. The new investment would expand Migdal’s investment in the project to up to $175 Million, beyond its investment in the company.

Migdal Insurance, Israel’s largest insurance company, with assets under management of $90 billion, is expanding its strategic partnership with Doral Renewables LLC (dba Doral LLC) by committing an additional amount of up to $75 Million in the second phase of the company’s Mammoth Solar project in Northwest Indiana. Migdal will own 22.5% of the project’s second phase, named Mammoth South, which is expected to generate 300 MWac of clean energy.

The new agreement would see Migdal increase its direct investment in the Mammoth Solar project, one of the largest solar projects in the country, to up to $175 million and its overall investment in Doral LLC, including capital and credit to an amount of up to $415 million. This investment is being carried by virtue of Migdal's option, under the initial agreement with Doral LLC in May, 2021, to invest in certain pre-defined projects of the company.

In May, 2021, Migdal acquired 20% of Doral LLC’s ownership for $110 million. In addition, Migdal has allocated a $130 million credit facility and committed to invest up to $100 million in the first phase of the Mammoth Solar Project (Mammoth North), expected to generate 400 MWac.

The Mammoth Solar project is one of the country’s largest solar farms with over 13,000 acres across Starke and Pulaski Counties in Northwest Indiana. The project is expected to generate 1.3GWac of clean energy, enough to meet the needs of over 230,000 households in the Midwest annually. The project is further projected to encompass an economic investment of approximately $1.5 billion. In October 2021, the company held a ribbon cutting ceremony, featuring the Governor of Indiana, The Honorable Mr. Eric Holcomb and the Israeli Ambassador to the US, Mr. Gilad Erdan.

“Midgal’s investment supports our achievement of becoming a market leader with the best people and a rapidly expanding project portfolio with over $6 billion in construction value. Mammoth Solar, Doral LLC and the renewables market is transforming the world. Indiana is a leader in the energy sector and their efforts to form the strongest industry cluster are working. Doral is creating jobs and revitalizing communities across America,” says Nick Cohen, President and CEO of Doral LLC.

Yaki Noyman, CEO of the Doral Group: “Migdal increasing its investment is a direct expression of the trust offered by Israel’s institutional entities in the renewable energy sector and in Doral in particular. We have chosen partners that are not only interested in generating returns from its investment, but also in its impact on the public and the environment. We continue to initiate and develop more projects in Israel, Europe, and the US.”

Erez Migdali, Deputy CIO and Head of Private Assets at Migdal Insurance: “We are delighted to deepen our investment in Doral LLC’s activities. This significant, growing partnership is an indication of our trust in the renewables industry and in Doral. This investment is in correlation with our ongoing ESG policy, in which we have developed an investment framework of over NIS 3 Billion in net positive investments, annually. I have no doubts that this deal, signed in the first days of 2022, is the first among many new investments we intend to promote in the upcoming year."

Doral

Doral LLC was founded in 2019 as a joint venture between Doral Group and Clean Air Generation. Doral LLC currently has approximately 6 gigawatts of projects under development and over 40,000 acres of land control in the 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. 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

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.

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