The financing for the NIS 4.1 billion ($1.19 billion) deal to buy the Haifa Port has been completed with a group of lenders led by the Mizrahi Tefahot Bank, a joint venture consortium between Israel’s Gadot Group and India’s Adani Ports and Special Economic Zone (APSEZ).
Meitav Investment House and State Bank of India are members of the consortium led by Mizrahi Tefahot.
A NIS1.7 billion ($0.49 billion) loan with a two-year tenor is used to pay for the transaction. The remaining sum will be paid for by internal accruals between the two partners.
The Adani-Gadot consortium had offered NIS3.9 billion for the Haifa Port, but due to a requirement that NIS200 million be added to the highest bid, the actual cost could reach NIS4.1 billion.
The Haifa port will be under concession until 2054. Haifa, one of Israel’s two largest commercial ports, is situated in the country’s north. It serves as the main port for cruise ships and handles nearly half of Israel’s container cargo. Gadot Group holds a 30% stake in the consortium, with Adani Ports holding the remaining 70%.