A joint venture consortium between India’s Adani Ports and Special Economic Zone (APSEZ) and Israel’s Gadot Group has closed the financing for the NIS4.1 billion ($1.19 billion) deal to acquire the Haifa Port with a group of lenders led by the Mizrahi Tefahot Bank.
The Adani-Gadot consortium had won a bid to buy the Haifa port in July this year.
The Mizrahi Tefahot-led consortium includes Meitav Investment House and State Bank of India.
The deal is being financed by a NIS1.7 billion ($0.49 billion) loan for a two-year tenor. The two partners will finance the rest of the deal from internal accruals.
Although the Adani-Gadot consortium had bid NIS3.9 billion for the Haifa Port, the final price would be up to NIS4.1 billion owing to a stipulation that NIS200 million be added to the highest bid.
The concession period for the Haifa port will be up to 2054. Located in northern Israel, Haifa is one of Israel’s two biggest commercial ports It handles nearly half of Israel’s container cargo and is also a principal port for passenger traffic and cruise ships.
Adani Ports owns a 70% stake in the consortium while Gadot Group holds 30%.
The port is close to the city of Haifa, the third largest city in Israel. It is also one of the major industrial areas of Israel. Haifa Port is operated by the Haifa Port Company Ltd, which also has real estate available for the development of office spaces, hotels, tourism and other recreational activities.
Haifa Port has a Roll-on Roll-off (RORO), a cruise terminal with various passenger facilities and a waterfront length of 2 km for development. During 2021, HPC handled 1.46 million TEUs of containers and 2.56 million tons of general and bulk cargo.