Nofar Energy Seeks 600 Million NIS in Sale of Core Israeli Solar Operations
Nofar Energy has put its historic core solar rooftop and storage operations in Israel up for sale for 600 million NIS, seeking to cut leverage and boost cash reserves.
Nofar Energy, controlled by Ofer Yanai, is offering to sell its historic core solar rooftop and storage operations in Israel for 600 million NIS. According to details obtained by Calcalist, the company is seeking 300 million NIS in cash and an additional 300 million NIS through a one-year vendor loan at an annual interest rate of 6%, amounting to a total payment of 318 million NIS after a year. The move appears aimed at reducing Nofar's high leverage and securing fresh liquidity.
The assets up for sale represent the foundational business launched by Yanai, which later expanded into Europe, the US, and Israel across power generation, storage, and solar sectors. This historical activity is held through Nofar Israel, a subsidiary managed by Nadav Barkan. It comprises 130 partnerships with kibbutzim and commercial entities across the country, encompassing approximately 1,554 solar installations on rooftops of cowsheds and agricultural buildings, as well as on water reservoirs.
Portfolio Scale and Financing Structure
The offered portfolio includes solar rooftop facilities with a total capacity of 346 megawatts and behind-the-meter storage facilities with a capacity of 113 megawatt-hours. Most partnerships involve minority stakes where Nofar acts as manager and operator in exchange for annual management fees. In late July, Nofar secured a credit facility from Bank Leumi to refinance existing debt, release invested capital, and upgrade solar and storage assets in Israel, though this is contingent on the approval of the various kibbutzim involved.
Under the proposed transaction, Nofar intends to consolidate most of these corporate entities under a single partnership named "Nofar Israel Pi S.P.," selling the rights as-is without due diligence. The surprise sell-off comes shortly after Nofar Israel completed massive funding rounds, including a 200 million NIS investment from Meitav for an 8.7% stake at a valuation of 2.1 billion NIS pre-money, and a 308 million NIS investment from Clal Insurance for a 18.75% stake at the same valuation. Nofar stated in response that it does not comment on market rumors and will act accordingly should a material event occur.
