Netafim announced today that it has signed a 5-year, $500-million financing contract. This facility comprises a $150 million long-term loan and $350 million of revolving short term loans and lines of credit for working capital and project-related guarantees. The lending syndicate is led by Bank Hapoalim and includes: HSBC, Mizrahi-Tefahot Bank, Migdal Insurance and Financial Holdings, Union Bank of Israel and Discount Bank.
“The financing facility will be used for strategic growth purposes in developing markets such as India, China, Brazil and Africa and will enable us to increase significantly our involvement in large-scale irrigation projects,” said Ran Maidan, Netafim’s CEO. “The growing and continuous demand for irrigation solutions, particularly drip irrigation solutions, offers significant growth potential for Netafim. The financing facility will help us reach our strategic goals, develop new products, promote technological innovation and, above all, strengthen our global leadership position.” “The agricultural market in general, and drip irrigation in particular lie at the heart of a number of important global issues,” Mr. Maidan added. “These relate to an increasing demand for food due to rapid world population growth, while the planet’s water and arable land resources are not infinite. At the same time, the agricultural sector is the world’s main consumer of water. As a result, there is a growing demand for better and technologically advanced irrigation solutions and greater agricultural efficiency. These trends, along with Netafim’s unique global presence and innovative, high quality products, present us with a significant growth opportunity. This financing agreement will enable us to realize this growth potential.”
