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TEL AVIV - NTA Metropolitan Mass Transit System Ltd., the company constructing Tel Aviv’s mass transit network, has entered into a five-year Power Purchase Agreement (PPA) with Enlight Renewable Energy (NASDAQ: ENLT), valued at $22 million. The deal, announced on February 26, 2025, enables NTA to significantly reduce its electricity costs by using clean energy. Enlight, with a market capitalization of $2.09 billion and impressive gross profit margins of 78.65%, has been showing strong momentum with revenue growth of 47.8% over the last twelve months.
The agreement, which also includes an option to increase purchase volumes, is part of Israel’s deregulated electricity market that allows direct sales between power producers and consumers. Enlight, listed on NASDAQ: ENLT and TASE: ENLT.TA, has secured similar agreements with other Israeli companies, positioning itself as a leader in the renewable energy sector. According to InvestingPro, the company shows promising fundamentals with 8 additional key insights available to subscribers.
NTA’s transition to renewable energy is expected to cut annual carbon emissions substantially, equating to the environmental benefit of planting around 380,000 trees or removing 9,000 private fuel-powered vehicles from the road each year. While Enlight’s stock currently trades near $17.39, InvestingPro’s Fair Value analysis suggests the stock may be slightly undervalued, with analyst targets ranging from $18 to $23.
Itamar Ben Meir, CEO of NTA, emphasized the environmental and economic benefits of the agreement, noting that the use of green power aligns with global standards in advanced countries and significantly cuts air pollution.
Gilad Peled, CEO of Enlight MENA, highlighted the deal’s financial advantages for NTA, which will save public funds while reinforcing Enlight MENA’s growth. He also pointed out that clean energy is becoming the most cost-effective option in the market, fostering competition and lowering prices for all Israeli consumers.
NTA’s project, including three light rail lines and three metro lines, is expected to serve an estimated 850 million passengers annually, with a total infrastructure cost of approximately ILS 200 billion.
Enlight, founded in 2008, operates in the United States, Israel, and ten European countries, focusing on solar, wind, and energy storage. The company’s growth is evident from its doubled revenues in Israel, reaching over $150 million last year.
This strategic partnership between NTA and Enlight is based on a press release statement and reflects a significant move towards sustainable energy consumption in Israel’s public transport sector.
In other recent news, Enlight Renewable Energy has successfully completed its public tenders for Series G and Series H notes in Israel, raising approximately $235 million. The Series G notes were issued at a discount rate of 2.9% with a price of NIS 0.971 per note, while Series H notes were set at NIS 1 per note with no discount. The proceeds from these offerings are earmarked for investment in large-scale renewable energy projects across the United States, Europe, and the MENA region, as well as for general corporate purposes. Notably, the Series H notes are convertible into ordinary shares during two specified periods. Enlight Renewable Energy received a stable A2.il rating from the Israeli credit rating agency Midroog for both series of notes, confirming the rating for up to NIS 900 million. The notes are subject to regulatory approvals, including the Tel Aviv Stock Exchange’s approval for listing. These offerings are conducted as an "overseas directed offering" in Israel and are exempt from registration under the U.S. Securities Act of 1933. The company emphasized that the offerings are not available to U.S. persons.
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