1. GREEN ENERGY you can rely on 0 חלופות מימון לפרויקטי תשתית הועידה השנתית למימון תאגידי דיתה ברוניצקי

2. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Secure the best solution for the specific circumstances Project finance Corporate debt Tax structures 1 Financing Strategies

3. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Project Finance – U.S. Capital Market Single project or a portfolio of projects Non recourse Prerequisites - well structured projects Examples from Ormat’s financing experience  OFC 144A senior secured notes $190 million, 16-year loan at 8.25% coupon Below investment grade offtakers  OrCal 144A senior secured notes $165million, 15-year loan at 6.21% coupon An investment grade offtaker 2 Portfolio of projects and the fact the projects were in operation enabled a long term cost effective financing

4. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Project Finance – Emerging Markets Single project financing Lenders – financial or government supported entities Political risk insurance Limited or non-recourse 3

5. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Project Finance - Tax Driven Financings (U.S.) Various lease structures Partnership with a flip Examples from Ormat’s financing experience  Puna - Non Recourse Leveraged Operating Lease & Leaseback 22 years, 4.3% yield financing  OPC Tax Monetization Transaction 10 years, 6.24% yield financing 4 The most efficient way to use tax credits and accelerated depreciation

6. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Specific Tax Driven Structures Examples of structures driven by specific legislation Royalty Trust Master Limited Partnership (MLP) RIET 5

7. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Tax Driven Structures – Royalty Trust A trust (pass through entities) listed on a U.S. stock exchange with No corporate tax Company transfers to the trust royalties or net profit interest Units typically held by retail investors Has to be passive investors Is typically used for income generating assets 6

8. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Tax Driven Structures – MLP Partnership listed on a stock exchange Tax benefit passed through directly to investors More flexible than Royalty Trust – it is based on an exemption in tax code, treating gain derived from exploration as eligible income Sponsor is typically the managing member 7

9. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Tax Driven Structures – REIT Similar to Royalty Trust and MLP But…. 75% of the assets should be real property 8

10. GREEN ENERGY you can rely on COPYRIGHT © 2011 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited Corporate Financing Term loans with institutional investors and commercial bank Traditional lines of credit 7 to 10-year bonds with institutional investors 9

11. GREEN ENERGY you can rely on 10 Thank You