CPV Renewables entered an approximately $430 million Bank Leumi financing agreement, including a $250 million term Loan and $180 million of guarantee and letter-of-credit facilities. For Kenon investors, the arrangement involves a Business 66.7% owned by CPV Group, while OPC owns 71% of CPV Group, linking the financing to Kenon’s Subsidiary structure.

Key Highlights

  • CPV Renewables entered a financing agreement with Bank Leumi for approximately $430 million.
  • The agreement includes an approximately $250 million term loan maturing in December 2031.
  • Approximately $180 million of facilities will support guarantees and letters of credit, with commissions ranging from 1% to 2%.

CPV Renewables has entered an approximately $430 million financing agreement with Bank Leumi, involving Kenon Holdings Ltd. (NYSE: KEN) through its subsidiary OPC Energy Ltd. The agreement includes an approximately $250 million term loan and about $180 million in guarantee and letter-of-credit facilities.

$250M Term Loan and $180M Facilities

The term loan is primarily intended to repay CPV Renewables’ project loans and will mature in December 2031. Interest will be charged at SOFR plus a Margin ranging from 1.8% to 2.4%. The agreement also provides approximately $180 million in guarantees and letters of credit, most of which are intended to replace existing facilities used for CPV Renewables’ benefit. Commissions on those instruments will range from 1% to 2%, depending on the letter of Credit or guarantee type. The financing carries customary financial covenants and other obligations. CPV Renewables will also be subject to customary undertakings, limitations, default events and repayment provisions associated with financings of this nature.

Kenon’s Subsidiary Structure

The agreement concerns an entity connected to Kenon through OPC Energy’s ownership of CPV Group. Its stated uses include repaying project loans and replacing most existing guarantee and letter-of-credit facilities. The filing identifies compliance with the financing agreement’s terms and covenants as a risk connected with the arrangement. The stated financing terms include both the term-loan Maturity and the commissions applicable to the supporting facilities.