Ormat Stock Dips: Ormat Technologies Issues $875M Convertible Bonds for Existing Bond Buybacks and Corporate Purposes

Reno (USA) – Ormat Technologies is issuing convertible senior notes with a total volume of $875 million. The company is offering $725 million of 1.5% Series A notes and $150 million of 0% Series B notes due 2031. The notes are being offered exclusively to qualified institutional buyers under Rule 144A.

The Series A notes pay semi-annual interest of 1.5%, while the Series B notes do not carry regular interest. Both series are convertible into the company’s shares, initially under certain conditions until November 14, 2030, and thereafter at any time until shortly before maturity.

Ormat stated: upon conversion, the company will pay up to the principal amount of the notes being converted in cash and then, at the company’s option, make either cash payments, deliver shares of the company’s common stock, or a combination of both.

Originally, a total volume of $750 million was planned—$600 million for Series A and $150 million for Series B. The volume of the Series A notes has been increased to $725 million.

Proceeds from the placement are intended for the repayment of existing 2.5% convertible notes due 2027, for share buybacks, and for general corporate purposes. Net proceeds are estimated at approximately $853.6 million, rising to up to $975.7 million if the purchase options are fully exercised. The transaction is expected to close on March 20, 2026.

Ormat’s stock, listed in the renewable energy index RENIXX-World, fell 2.1% yesterday to €93.32 (closing price, March 17, 2026, Stuttgart Stock Exchange). In today’s trading, the stock is currently down 0.7% at €92.68.

Source: IWR Online, 18 Mar 2026