KfW IPEX-Bank and LBBW finance modernisation of Israeli coal-fired power plants

Frankfurt am Main (ots) -

- EUR 150 million loan for Israeli power supplier
- Modernisation of six coal-fired power plants will reduce
nitrogen oxides up to 92 per cent
- German SME Babcock Noell GmbH to plan, deliver and commission
flue gas denitrification plants

With a loan totalling around EUR 150 million KfW IPEX-Bank and
Landesbank Baden-Württemberg (LBBW) are supporting the Israeli
electricity supplier The Israel Electric Corporation LTD (IEC) with
its extensive investment programme. Among others, the programme
provides for the installation of state-of-the-art denitrification
(DeNOx) plants in a total of six coal-fired power plant blocks. The
Würzburg-based SME Babcock Noell GmbH will supply the environmental
technology. The German-designed denitrifiction plants will be sized
to reduce the power plants' current emissions of nitrogen oxides up
to 92 per cent, (down to 24.4 ppmvd). In a first stage, the plants'
emissions will be reduced by 83%, (down to 48.8 ppmvd) with the
possibility of further reduction at a later stage, thereby meeting
very strict standards, which are stricter than those applying within
the European Union.

KfW IPEX-Bank and LBBW will each provide half of the loan, which
will be secured with an export credit guarantee of the Federal
Republic of Germany. The term of the financing is 12 years.

"This use of top-end technology financed by us will directly
contribute to making Israel's conventional power generation more
environmentally friendly. For the German exporter Babcock Noell the
IEC order is also an important reference for other large corporate
customers across the globe," said Markus Scheer, member of the
Management Board of KfW IPEX-Bank.

"Supporting German SMEs in their foreign business activities is
among the core competencies of LBB Group. We offer a number of export
finance variations to meet different client needs. In this case, we -
together with KfW IPEX-Bank - found an optimal solution for both IEC
and Babcok Noell in the form of a long-term buyer credit", sais
Joachim Landgraf, Global Head Export Finance at LBBW.

The German general contractor Babcock Noell, which is part of the
Bilfinger Group, will plan, deliver and commission the new DeNOx
plants. They are composed of catalytic systems including units for
producing ammonia from urea as well as new induced draft fans.

The integrated state-owned power company IEC is responsible for
the power supply of nearly the entire country - from energy
generation to distribution and its sale to end-use customers. The
ambitious investment programme provides for the modernisation of
altogether six power plant blocks at two locations, one near the city
of Hadera and the other near Aschkelon, both along Israel's
Mediterranean coast.

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank is in charge of
international project and export finance. It is responsible for
providing financing to support the German and European economy, a
task derived from the legal mandate assigned to KfW Bankengruppe. Its
prime focus is on medium- and long-term lending to boost the export
economy, develop economic and social infrastructure and support
environmental and climate protection projects. KfW IPEX-Bank operates
as a legally independent group subsidiary and plays a major role in
fulfilling the promotional mission of KfW Bankengruppe. It has around
590 employees and is represented in the key economic and financial
centres around the globe.

About LBBW

Landesbank Baden-Württemberg (LBBW) is both a commercial bank and
the central bank of the savings banks in Baden-Württemberg, Saxony
and Rhineland-Palatinate. With total assets of EUR 336 billion and
around 11,600 employees (as of 31 December 2012), LBBW is one of the
largest banks in Germany, and in its core market Baden-Württemberg it
is by far the most important one. Its core activities are the private
customer business and the business with corporate customers, in
particular small and medium-sized enterprises, as well as savings
banks. A further focus is placed on real-estate financing as well as
the customer-oriented capital market business with banks, savings
banks and institutional investors.

Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: Thomas.Krick@kfw.de
Tel. 069 7431-8454, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de