TEL AVIV (Reuters) – Bank Hapoalim has led a deal to provide over $200 million for the Ethiopian government’s sugar company to finance an irrigation project by Netafim Ltd, Israel’s biggest bank said on Sunday.
The project covers 7,000 hectares (17,297 acres) of sugar cane. Israel’s Netafim said this was its largest deal ever.
The finance will be provided as buyers’ credit, guaranteed by the government of Ethiopia, in tranches against milestones in the project, and will be transferred directly to Netafim as payment for exports. The government sugar company will repay the credit in 9.5 years.
Netafim has 17 factories and 4,300 employees around the world, supplying to over 110 countries.
Netafim said this was similar to projects that Netafim has carried out in India, South Africa, Brazil and Peru.