Infrastructure Investment Fund Keystone Wright , Completed last Thursday Capital Raising NIS 350 million in issuing packages of shares and warrants to institutional entities. Most (92.4%) of the packages were purchased by only four institutional entities, Altshuler Shaham, Menora Mivtachim, Migdal Insurance and Clal Insurance.
The capital was raised through the issuance of 350,000 units, each of which includes 100 shares and 35 Series 1 warrants. From the date of issue.
Thus, full exercise of the warrants will flow into Keren’s coffers Keystone Another NIS 130.5 million. According to the Keystone Fund, the demand for the offering exceeded the supply and amounted to NIS 377.5 million, of which Keystone chose to respond to orders in the amount of NIS 350 million.
Keystone Reit, managed by Navot Bar, is a company that operates in the form of an infrastructure investment fund. The issuance of the issue is mainly used by Kiston to repay a credit of NIS 310 million that the fund received from the Harel insurance company.
Keystone recently reported that it received a credit line of NIS 500 million for two years, from Harel Insurance and Finance, in order to improve the liquidity, financial flexibility and speed of response of the fund. From this credit line, an amount of NIS 310 million was withdrawn for the purpose of completing the first phase of the transaction to acquire the share of Keren Noy, Phoenix and Leumi Partners in the companies that own (in the chain) the IPM power plant in Beer Tuvia.
The station, which has a power generation capacity of 451 megawatts, operates on the 914 series so that 85% of the electricity produced in it is sold to the electricity grid, and the rest to private consumers. In the first phase of the deal, Keystone paid NIS 220 million to the Phoenix company and Leumi Partners, and during that time it will pay another NIS 380 million to the sellers, after receiving the necessary approvals.
Overall, Keystone will directly and indirectly own approximately 34% of IPM’s shares, making it the largest shareholder in the power plant. As part of the first phase, Keystone purchased 10.25% of the shares in Global Power from the Phoenix and agreed with Ehud Ben Shach, who holds 40.3% of the shares in Global Power, to grant a first right in the event that one of them seeks to exercise his holding.
Keystone, which is controlled by Roni Biram, Gil Doisht and CEO Navot Bar, became a public company in June this year, after completing a NIS 120 million fundraiser at a value of NIS 600 million. Keystone’s total assets are about NIS 1.25 billion.
The initial public offering on the stock exchange, together with the recent capital raising and the planned bond issue, will lead to a change and strengthening of the Keystone Fund’s capital structure in the long term. Upon completion of the raising, the fund’s equity will stand at NIS 1 billion.
According to the fund’s management, these moves strengthen Keystone’s business development ability and growth in executing transactions. This is when the diversity and availability of capital sources allow the fund financial flexibility, cost reduction and speed of response.
Last week, Keystone received a local A-plus rating from S&P Maalot in preparation for raising up to NIS 400 million by issuing unsecured bonds from the new A-series. The proceeds of the offering will be used primarily to refinance existing financial debt and to fund Keystone’s day-to-day operations.
The IPM transaction joins a series of complex transactions that the fund has completed in the two and a half years since its establishment, including the acquisition of holdings in the operator companies, which operate Road 6 and the Carmel Tunnels, 50% of the Ashkelon desalination plant, partnership with Ramat Hovav power plant. As well as controlling the public Sunflower company and becoming the fund’s investment arm in the field of renewable energy. Keystone also recently announced negotiations with one of the groups competing for the Hagit power plant, as part of a tender is part of the privatization of the IEC’s production component, as well as its participation in the preliminary phase of the tender for the sale of control of Egged.