Strategy and Operations
Ampa was initially the non-bank financing unit of the Industrial Development Bank and earned its expertise in industrial equipment financing. Over time, Ampa expanded into tangential fields, and today Ampa Capital is a “one stop shop” of financing solutions for businesses. Its specialization portfolio includes, along with equipment financing, non-bank business loans, check discounting, and real estate financing. Ampa’s deep understanding of each of its fields, along with its broad perspective, enables it to tailor financing solutions to its customers’ needs and possibilities, and save them from unnecessary expenses.
As a privately-owned company, Ampa Capital finances its activities through equity, bank financing in Israel and abroad, institutional entities and bond issues in the capital market. It is recognized for its financial successes and proper risk diversification policies, all of which have enabled it to make 13 issues of cash-flow-backed bonds, which have raised more than NIS 1.1 billion from institutional investors. The offerings were rated by Midroog’s at Aa2, and over time, the company has repaid over NIS 900 million of its outstanding bonds. In 2016, Menorah Mivtachim, a sizeable Israeli conglomerate, acquired part of the company, and gave it significant additional reinforcement, along with a variety of new financial possibilities for customers. From its early days, the company has consistently been profitable.
Medium and Long-Term Financing
The company provides customer financing through a number of unique plans:
• Financial leasing for new and used equipment – this financing track is offered directly to buyers of new and used equipment, in a speedy and efficient process.
• Equipment financing through loans – this track is designed primarily for enterprises that hold “approved enterprise” status from the Investment Center of the Ministry of Industry, Trade, and Labor, as well as other enterprises that receive State grants.
• Operational leasing – this track is designed for customers that want an operational lease, and the equipment is registered in Ampa Capital’s name. The customer pays a monthly leasing fee while retaining a purchase option at the end of the lease period.
• Leaseback equipment financing – this track allows customers to leverage their businesses’ existing production lines optimally by using liens and receiving loans at higher leverage ratios.
Short-Term Acquisitions Financing
Financing foreign or local purchases – this track provides financing for the purchase of goods and services, and to improve the credit terms offered by suppliers to their customers. The credit is available against the receipt of post-dated cheque for up to 180 days. Ampa Capital offers from NIS 200,000 and up to NIS 2 million to any single customer. Payments are made directly to the customer’s bank account after proof of payment, or directly to the suppliers.
Advantages of Ampa Capital’s Acquisition Financing Program:
• Discounts – increasing cash payments to suppliers or opening letters of credit to foreign suppliers, allows the customer to benefit from discounts on cash payments.
• No need for collateral and liens – increasing the credit period offered by suppliers for current purchases for up to 180 days beyond the original terms, without collateral or liens.
Discounting of Negotiable Checks
This credit track allows for the financing of transactions executed in respect of which invoices were issued by customers, but their consideration has not yet been received. These transactions are accompanied by post-dated checks. In this case, the company receives checks for collection originally received by customers from purchasers of their products and the cash flows to the customer immediately. The credit facility and its terms are determined according to needs and customer data, with a credit period of up to 180 days.
Real estate project financing
The synergy with Ampa Real Estate and Ampa Israel (which are part of the Ampa Group of Companies, and among Israel’s leading real estate companies), enables Ampa Capital to offer higher financial leverage ratios to entrepreneurs along with professional advice, according to the customer’s needs. At the same time, and as an experienced and highly developed non-bank conglomerate, Ampa Capital can respond quickly to each entrepreneur and can offer it an ultimate financing solution. Ampa Capital offers financial support for residential construction projects in general and TAMA 38/1 in particular, as well as loans to supplement shareholders’ equity, bridge loans and the like.
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