The profit jumped to about NIS 105 million: an impressive half and quarter for Keystone

Keystone, under the management of Navot Bar, which invests in assets in the infrastructure world, reports today (Wednesday) its results for the first half and second quarter of 2022 and records a significant increase in dividend income and receipts due to investments, loans and interest, in profit and cash flow from current operations.

• Keystone’s income from dividends, receipts from investments, loans and interest amounted in the second quarter of 2022 to approximately NIS 175 million, compared to approximately NIS 23 million in the corresponding period last year.

• The energy sector, which is a significant anchor in Keystone’s property portfolio, is benefiting from an increase in demand and electricity prices.

• Net profit rose sharply to a total of approximately NIS 105.2 million, compared to NIS 13.9 million.

• The cash generated from current activities during the reporting period totaled approximately 96.9 million NIS in the period, more than 6 times compared to the corresponding period last year.

• Keystone’s investments as of June 30, 2022 amount to approximately NIS 1.8 billion.

Navot Bar, CEO of Keystone: “Keystone concludes a successful half year and brings its investors strong results that are reflected in a stable income stream, impressive returns on capital and assets, and a growing and diversified asset portfolio. The results reflect the successful implementation of the fund’s investment strategy, which combines a diverse base of quality yielding assets with growth investments and assets under construction. Anticipating an electricity market with a shortage and an expected increase in the price and demand for electricity, Keystone established significant holdings in the natural gas electricity generation market in the last two years through the private power plants IPM, Ramat Hovav and Hagit. Confirmation of Keystone’s strategy in the electricity market is reflected in a further increase in the value of the investment in Ramat Hovav. Looking ahead, Keystone sees the public transportation market as a market that will experience significant growth. These assessments formed the basis of Keystone’s entry into the latest investment in Aged, which is in the process of completing the conditions pending the completion of the transaction.”

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Significant events for the first half of 2022:

yielding assets:

• Completion of the purchase of 34% of the IPM power station: the purchase of Keren Noi, Phoenix and National Partners’ shares in the IPM power station in Be’er Tovia, as well as the “Phoenix loan” in exchange for approximately NIS 600 million. The station operates with a capacity of 451 MW and in accordance with regulation 914, so that 85% of the electricity produced there is sold to the electricity grid, and the rest to private consumers. A first payment of approximately NIS 220 million was paid during 2021, the rest of the amount was paid upon completion of the deal in February 2022.

• Signing an agreement to purchase 60% of the shares of “Egged” – a partnership in which Keystone owns approximately 78% signed an agreement to purchase the shares, the consideration in the agreement is approximately NIS 2.8 billion (subject to adjustments). In addition, the partnership signed a financing agreement with a banking consortium in the amount of up to NIS 1.44 billion. The partnership made an advance of approximately NIS 350 million on account of the deal. The transaction has not yet been completed and is subject to receiving various approvals.

• Provision of loans (partly converted) for the purchase of the Hagit power plant, the company provided loans, partly converted, to the Adeltec Group in the amount of approximately 108 million NIS to finance its share in the purchase of the Hagit power plant located in the north of the country and having an aggregate production capacity of approximately 660 megawatts. Part of the loans is expected to be converted to investment, when the holdings after the conversion will reflect a holding of about 16.33% in the chain in the capital of the partnership that owns the station.

Growth platform and assets under construction:

• Investment in the field of charging stations for electric vehicles in Spain – in March 2022, Keystone signed an investment agreement in Eranovum e-mobility, which establishes charging stations for electric vehicles in Spain. The investment is expected to be two-stage, where in the first stage Keystone invested approximately 11.5 million euros in exchange for a 30% allocation, and in the second stage Keystone has the right, in accordance with the terms of the agreement, to invest an additional amount of 15 million euros in the company in exchange for an additional 19% allocation, so that it reaches the rate Holding of 49%.

Divisions:

• During the reporting period, Keystone distributed a dividend of approximately 40 million NIS, which reflected a return of approximately 4% to equity.

recruitments:

• Capital raising in the amount of approximately NIS 403 million: approximately NIS 302 million in rights and approximately NIS 101 million in a non-uniform offer.

• Debt raising in the amount of approximately 182 million NIS in the expansion of Series A at a yield of 2.86% linked to an index.

Keystone is an Israeli infrastructure investment fund that was established in 2019, against the background of the recommendations of the committee to promote the establishment of exchange-traded funds for investment in infrastructure, which are intended to encourage the establishment of exchange-traded funds for investment in infrastructure, which include projects of water, wastewater and waste facilities, infrastructure in the field of energy, transportation and PPP projects ( establishing projects in cooperation between the state and the private sector). The founders of Keystone are the entrepreneurs Roni Biram (serving as chairman of the board), Dr. Navot Bar (serving as CEO and director) and Dr. Gil Deutsch.