Company Also Enters into EPC Agreement with Leading Contractors for the Development of the Project

Agreements Mark Key Milestones Toward Financial Close and the Commencement of Construction

TEL AVIV, Israel , June 3, 2026 /PRNewswire/ -- OPC Energy Ltd. (TASE: OPCE), a leading independent power producer in Israel and the U.S., providing reliable and efficient electricity generation through natural gas and renewable energy, today announced that it has entered into a financing agreement with Bank Leumi, pursuant to which Bank Leumi is expected to lead the financing of approximately 80% of the construction cost of the 'Hadera Expansion' project, currently estimated at $1.7-1.8 billion (approximately NIS 4.8-5.2 billion).

The financing agreement represents a significant milestone in advancing the project and supports the Company's long-term growth strategy.

The loan will be provided for a term of 6-10 years and will bear interest at the Prime rate (the benchmark lending rate in Israel, currently defined as the Bank of Israel rate plus 1.5%) plus a margin in the range of 0%-0.7%, depending on the loan term. Repayment of the principal is scheduled to commence six years following the initial drawdown date.

Concurrently, OPC Energy announced the execution of an EPC (Engineering, Procurement and Construction) agreement for the development of the project. Solel Boneh, one of Israel's largest and most established construction and civil engineering companies specializing in large-scale infrastructure projects, has been selected as the EPC contractor and will carry out the project in cooperation with a leading international contractor with comprehensive experience in the design, construction, and execution of complex infrastructure projects, including combined cycle natural gas power plants. Under the EPC agreement, the contractor will be responsible for the engineering, procurement, and construction of the project.

Giora Almogi, CEO of OPC Energy, commented: "The signing of the financing agreement with Bank Leumi and the EPC agreement with Solel Boneh, together with a leading international contractor with extensive proven experience, marks a significant milestone in advancing the project. The power station to be constructed, with a capacity of approximately 850 megawatts, is expected to be among the most advanced and efficient in Israel and will enhance the Company's strategic positioning.

We appreciate our collaboration with the Israeli banking system, and particularly with Bank Leumi, which continues to support the Company's projects in both Israel and the United States. The financing agreement with Bank Leumi, alongside the EPC agreement, reflects the strong confidence in OPC's strategy, execution capabilities, asset quality, and the project's long-term potential.

In parallel, our engagement with Solel Boneh and its international partner combines proven local expertise with global experience, supporting the development of an advanced, reliable, and highly efficient power station that will contribute to the continued growth and stability of Israel's electricity sector."

Liat Shuv, Head of the Business Division at Bank Leumi, stated: "The financing of energy and national infrastructure projects is one of the key growth engines of both the Israeli economy and Bank Leumi. As Israel's largest and leading bank, we place great importance on advancing the financing of projects of national significance that contribute to securing the country's energy future. Among these, the 'Hadera Expansion' project stands out as one of the largest and most important, and we are pleased to partner with OPC in its development.

The dedicated national infrastructure financing platform we have established within the bank reflects this commitment. This transaction aligns with the broader trend of accelerating investment in energy infrastructure, including the expansion of generation capacity, as part of strengthening the resilience, reliability, and long-term stability of Israel's energy sector and economy."

As previously announced, OPC Energy entered into agreements with GE Vernova for the supply of the project's main equipment and for the provision of long-term maintenance services. Pursuant to the EPC agreement, these contracts will be assigned to the EPC contractor.

The 'Hadera Expansion' project includes the development of a combined cycle natural gas-fired power plant with an expected generation capacity of approximately 850 megawatts. The facility will be constructed on land adjacent to the Company's existing Hadera power plant. Upon completion, the plant is expected to sell electricity into the SMP market and receive availability payments from the System Operator for a period of 25 years.

About OPC Energy

OPC Energy Ltd. (TASE: OPCE) is a leading energy company operating in the Energy Transition space in Israel and the U.S. and provides electricity in an efficient, reliable and environmentally friendly manner while combining highly efficient natural gas with solar, wind and storage.

In Israel, OPC is the first and leading private electricity producer, offering its customers an integrated solution by supplying all energy needs through the company's production sites and in the customer's yard. OPC continues to expand its generation portfolio and customer base in Israel, advancing a growing pipeline of renewable and natural gas projects to support the evolving needs of the Israeli electricity market.

In the U.S., the company operates through the CPV Group, which has over 25 years of success in the development and operation of highly efficient, low emission electric generation and renewable projects. CPV is focused on leveraging its extensive experience to advance its current portfolio of 15 GW of renewable and natural gas projects.

For more information, please visit: www.opc-energy.com/en

Company Contact:
Ana Berenstein Shvartsman, CFO Ana.berenstein@opc-energy.com
Yehonatan Mualem, Finance & IR Manager yehonatan.mualem@opc-energy.com

Investor Relations Contact:
Miri Segal, CEO, MS-IR LLC, msegal@ms-ir.com

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SOURCE OPC Energy