Ormat Convertible Bond Successfully Placed: Ormat Increases Convertible Bond Issue to USD 1 Billion Following Greenshoe Exercise – Funds for Buybacks and Growth

Reno (USA) – US energy company Ormat Technologies has expanded its convertible bond offering to a total of USD 1 billion and successfully completed the placement, following strong demand from institutional investors.

In addition to the base offering, which had already been increased during the placement process, the full exercise of the over-allotment option (Greenshoe) contributed to the final size.

The initial offering was planned at USD 750 million but was increased to USD 875 million during marketing. Following the subsequent full exercise of the over-allotment option by the initial purchasers, the volume rose by another USD 125 million to USD 1 billion in total.

The offering includes USD 825 million of Series A bonds with an interest rate of 1.50 percent and USD 175 million of Series B bonds with zero coupon. Both tranches mature in March 2031 and may be converted into shares under certain conditions. The initial conversion price was set at a 30 percent premium over the company’s stock price.

“We are pleased with the successful completion of this offering, which benefited from strong demand and a robust market for convertible bonds,” said CEO Doron Blachar. He added that the structure provides “the best combination of low or no cash interest, financial flexibility, and the ability to reduce equity dilution.”

Part of the proceeds was used by the company, listed in the renewable energy stock index RENIXX World, to refinance existing convertible bonds maturing in 2027 (approximately USD 286 million) and for share buybacks (approximately USD 25 million). The remaining funds are available for general corporate purposes.

After a 4.4?% drop to EUR 92.10 last week, Ormat’s shares gained 1.8?% to EUR 93.76 in yesterday’s trading (closing price, 23 March 2026, Stuttgart Stock Exchange).

Source: IWR Online, 24 Mar 2026