Best Project Finance Lawyers in Azor

1. About Project Finance Law in Azor, Israel

Project finance in Israel uses a special structure where a dedicated project entity raises debt and equity secured by the project’s cash flows and assets. An SPV (special purpose vehicle) is usually created to isolate project risk from sponsors. In Azor, as in other Israeli municipalities, land use rights, permits, and offtake agreements drive the legality and viability of the project. Local permits and national regulations both shape the financing plan and the collateral package.

Israel does not rely on a single project finance act; instead it applies a mix of corporate, securities, and regulatory regimes to structure long term infrastructure deals. A typical arrangement combines company law, land use approvals, contract law, and finance law to enable a lender on a non-recourse or limited-recourse basis. For Azor projects, counsel often coordinates between SPV governance, lender security interests, and regulatory compliance through local and national authorities.

“Israel maintains a robust framework for project finance that emphasizes SPV structures, offtake arrangements, and security packages.”

For residents of Azor, engaging a local solicitor or advocate who understands both municipal planning processes and national finance regulation is essential. Local counsel can manage permitting timetables, ensure clear land rights, and align the project timetable with lender requirements. This integrated approach reduces timing risk and helps secure durable financing.

Sources: Israel Securities Authority, Bank of Israel, Israel Tax Authority.

2. Why You May Need a Lawyer

• Setting up an SPV for an Azor infrastructure project. You must choose the right corporate form, draft the SPV’s shareholder agreements, and ensure governance aligns with lender expectations. A lawyer helps with equity waterfall, preferred returns, and sponsor guarantees.

  Example: a wind or solar project near Azor requires an SPV to own the project assets and enter into a long-term power purchase agreement with a utility or offtaker. The attorney coordinates the SPV capitalization and lender security package to support non-recourse debt.

• Negotiating and documenting debt facilities and security packages. Lenders require perfected security, intercreditor arrangements, and precise collateral descriptions. An advocate ensures the security interests attach to project assets and remain enforceable in Israel and abroad.

  Example: cross-border lenders may require a pledge over project assets, a security interest in project accounts, and a robust intercreditor agreement among lenders and sponsors.

• Managing land use, planning and building approvals in Azor. Projects must obtain zoning, building permits, and compliance with national planning rules before construction starts. A lawyer coordinates correspondence with municipal planning authorities and the district planning committee where necessary.

  Example: securing a building permit for a solar farm involves disclosing environmental impact, land ownership, and grid interconnection rights to the Planning and Building authorities.

• Navigating tax incentives and regulatory compliance for project finance. Judgment about eligibility for capital investment incentives and ongoing tax compliance affects cash flow. An attorney can align financing with available tax regimes and export or investment incentives.

  Example: structuring investments to leverage capital investment incentives requires careful timing and documentation to qualify for benefits under Israel’s investment laws.

• Ensuring anti-money laundering and know-your-customer compliance for lenders. Israel imposes AML requirements for financing transactions, with obligations on beneficial ownership, source of funds, and ongoing monitoring.

  Example: lenders require a documented compliance program and an appointed AML officer for the project entity and sponsors.

3. Local Laws Overview

Companies Law, 1999 (5759-1999)

This statute governs incorporation, governance, and fiduciary duties of Israeli companies, including SPVs used in project finance. It sets rules for board composition, shareholder rights, and related-party transactions. In Azor projects, the SPV typically operates under this law with detailed shareholders' agreements and governance provisions.

Planning and Building Law, 1965 (5726-1965)

This framework controls land use, zoning, and building permissions in Israel. For projects in Azor, developers must obtain zoning approvals, environmental clearances, and construction permits before proceeding. The law shapes project timing and the scope of construction agreements with contractors.

Securities Law, 1968 (5728-1968)

The Securities Law regulates the offering and trading of securities in Israel. Project finance structures that involve issuing bonds or equity to investors must comply with disclosure, prospectus, and registration requirements. The Israel Securities Authority administers enforcement and regulatory oversight of these activities.

Public-Private Partnerships Law, 2013 (as part of the PPP framework)

Israel adopted a framework to promote long-term private involvement in public projects. The PPP regime affects how government concessions are structured, tendered, and managed. The PPP Authority oversees bidding processes, risk allocation, and contract standard terms for eligible projects.

Recent trend notes: Israel has refined PPP guidelines to improve tender clarity, risk allocation, and financing consistency since the 2010s. In practice, many large-scale infrastructure deals rely on the PPP framework for concession design, budget control, and performance guarantees. Sources for regulatory context include the Israel Securities Authority, Bank of Israel, and the Public-Private Partnerships framework.

Additional official resources: - Israel Securities Authority - Bank of Israel - Israel Tax Authority

4. Frequently Asked Questions

What is project finance and how does it work in Israel?

Project finance uses an SPV to fund a project with debt primarily secured by project cash flows. Lenders rely on the project’s revenue and assets rather than the sponsors' balance sheets. In Azor, the setup hinges on land rights, permits, and offtake agreements.

How do I start an SPV for a project in Azor?

Start by defining the project, selecting a jurisdiction, and engaging a local advocate. Draft the SPV shareholders agreement, appoint directors, and file the necessary registrations under the Companies Law. Early decisions about equity structure affect financing terms.

What is a power purchase agreement and who signs it in Israel?

A PPA is a long-term contract with an offtaker for electricity or energy output. In Israel, PPAs may be with a utility or a large commercial off-taker, validated by the regulator. The SPV typically signs the PPA and uses it as a cash flow backdrop for debt service.

Do I need a local lawyer for land permits in Azor?

Yes. Local counsel helps navigate municipal planning, building approvals, and environmental clearances. A lawyer coordinates with the Azor local council and district planning authorities to avoid permit delays.

How much does a project finance solicitor typically cost in Israel?

Costs vary by project complexity and the size of the financing. Typical fees include upfront retainer, milestone-based work, and success-based closing fees. Request a detailed engagement letter outlining scope and hourly rates.

How long does it take to close a project finance deal in Israel?

Closing timelines depend on due diligence, permits, and lender conditions. A straightforward energy project might close in 3-6 months, while complex concessions can take 9-12 months. Build a realistic schedule into the term sheet.

Do I need to register a company before financing?

Often yes. An SPV is commonly formed to own project assets and isolate risk. The Companies Law governs incorporation, capital structure, and ongoing compliance for the SPV.

What is the difference between recourse and non-recourse debt?

Recourse debt allows lenders to pursue sponsor assets beyond the project. Non-recourse debt relies primarily on project cash flows and assets for repayment. Lenders in Israel frequently require non-recourse features for project finance.

What are typical collateral packages for Israeli project finance?

Collateral usually includes project assets, contract rights, revenue streams, accounts, and sometimes guarantees. Perfection of security is critical for cross-border lenders and is usually accomplished via a security agreement and proper filings.

Is it possible for foreign investors to participate in Israeli project finance?

Yes. Foreign investors can participate via equity in the SPV or debt, subject to regulatory approvals and compliance with local securities rules. Counsel should anticipate tax, repatriation, and AML requirements.

Do I need to comply with anti-money laundering requirements?

Yes. Israeli AML laws require customer due diligence, beneficial ownership disclosure, and ongoing monitoring. An AML program is essential for lender confidence and regulatory compliance.

Should I engage a local or national law firm?

A local Azor-connected firm offers intimate knowledge of municipal processes, while a national firm brings large-scale project finance experience. Many projects pair both, leveraging local insights and cross-border expertise.

5. Additional Resources

Use these official sources for regulatory guidance and up-to-date procedures:

• Israel Securities Authority - Regulates securities markets and corporate issuances in Israel. https://www.isa.gov.il/eng/Pages/Home.aspx
• Bank of Israel - Central bank and financial system regulator, with guidance on lending markets and macroeconomic factors affecting project finance. https://www.bankofisrael.gov.il/en
• Israel Tax Authority - Information on taxation, incentives and compliance for Israeli investments. https://tax.gov.il/en/Pages/default.aspx

6. Next Steps

1. Define the project and financing goals within Azor. Clarify the project type, expected capex, timeline, and target debt-to-equity ratio. Create a preliminarystakeholder map including municipal authorities.
2. Engage a local project finance solicitor or advocate. Seek a firm with Azor experience, who can coordinate SPV creation and permit timelines. Request a written scope and fee estimate within 10 days.
3. Assemble initial due diligence documentation. Gather land documents, title records, permits, environmental impact assessments, and draft offtake or PPA agreements. Allow 2-4 weeks for compilation.
4. Draft the term sheet and select the financing structure. Decide on recourse vs non-recourse, debt tenor, and security packages. Prepare a lender-friendly term sheet for initial negotiation.
5. Form the SPV and finalize governance arrangements. File the SPV with the Registrar of Companies, appoint directors, and sign shareholders agreements. Schedule signing within 2-6 weeks after term sheet finalization.
6. Negotiate and close with lenders and regulators. Address covenants, security perfection, and regulatory approvals. Plan for 1-3 months from final term sheet to closing, depending on permits.
7. Establish post-close compliance and reporting. Implement ongoing corporate, AML, and financial reporting, and appoint a compliance officer where required. Review annually for regulatory changes.