A PYMNTS Company

Israel: Leviathan Partners get up to $1.75 billion HSBC, JPMorgan Financing

By  |  November 27, 2016

Israel-based Delek Group, controlled by billionaire Yitzchak Teshuva, secured as much as $1.75 billion in loans to help finance development of the country’s biggest natural gas reservoir. Israeli gas shares rose.

Delek units Delek Drilling and Avner Oil Exploration will be able to borrow at least $1.5 billion in limited-recourse loans from JPMorgan Chase and HSBC Holdings, Delek Drilling said Sunday in an e-mailed statement. The funds will help pay for the first stage of Leviathan’s development, which includes contracts to supply the Israeli market and Jordan.

The Leviathan partners have been moving ahead to develop the offshore field since clearing up antitrust issues with Israel’s government earlier this year. Regulatory concerns had stalled the project, and the companies are planning to pump the first gas by 2019.

Houston, Texas-based Noble Energy, which holds a 39.7 percent stake in Leviathan, has yet to raise its portion of the financing.

Full Content: Bloomberg

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