Kenon Announces Receipt of approximately $93 million in connection with Payment of Arbitration Award by the Republic of Peru

Rhea-AI Summary

Kenon (NYSE: KEN) reported that the Republic of Peru has paid in full an arbitration award rendered by an International Centre for Settlement of Investment Disputes tribunal in October 2023. The total payment was approximately $203 million, of which Kenon’s share, after allocation to a capital provider and expenses, is about $93 million, subject to tax.

The payment represents the final settlement of amounts owed by Peru in connection with the award and the conclusion of this matter. The original award ordered Peru to pay Kenon and IC Power $110.7 million in damages plus $6.4 million in fees and costs, together with pre- and post-award interest.

Positive

• Kenon cash inflow of approximately $93 million from arbitration award
• Total arbitration-related payment from Peru of approximately $203 million completed
• Arbitration dispute with the Republic of Peru fully concluded, removing case uncertainty

Negative

• Kenon’s net share of payment is $93 million versus total $203 million after capital provider allocation and expenses
• Kenon’s approximately $93 million proceeds are subject to tax, reducing net after-tax benefit

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SINGAPORE, Aug. 19, 2026 /PRNewswire/ -- Kenon Holdings Ltd. (NYSE: KEN) (TASE: KEN) ("Kenon") announces that the Republic of Peru has paid the award rendered in the arbitration proceedings before an International Centre for Settlement of Investment Disputes tribunal (the "Tribunal"), which award was issued in favor of Kenon by the Tribunal in October 2023 (the "Award"). The total payment was approximately $203 million, of which Kenon's share (after allocation of a portion of the proceeds to a capital provider and payment of certain expenses) is approximately $93 million, subject to tax. The payment reflects final payment of amounts payable by the Republic of Peru in connection with the Award and conclusion of this matter.

As previously disclosed, the Republic of Peru was ordered to pay Kenon and IC Power $110.7 million in damages together with $6.4 million in certain fees and costs, plus pre-award and post-award interest, in connection with the Award and the dismissal of the Republic of Peru's subsequent application to annul the Award.

Also as previously disclosed, IC Power and Kenon had entered into an agreement with a capital provider to provide capital for expenses in relation to the pursuit of the arbitration claims against the Republic of Peru and other costs, which agreement entitles the capital provider to a return of its capital and payment of a portion of the proceeds of the Award.

The Award, the claims and related proceedings, and the agreement with the capital provider are described in Kenon's Report on Form 6-K furnished to the U.S. Securities and Exchange Commission on June 29, 2026 and Kenon's annual report on Form 20-F for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission.

About Kenon

Kenon is a holding company initially established to promote the growth and development of our primary businesses. Over the last decade, Kenon's businesses and holdings have substantially evolved and unlocked substantial shareholder value, with Kenon demonstrating a track record of achieving strong shareholder return. Kenon currently has a 46% interest* in OPC, a leading owner, operator and developer of power generation facilities in the Israeli and U.S. power markets.

*Including approximately 2% of OPC's outstanding shares subject to a collar arrangement.

Contact Info
Kenon Holdings Ltd.
Deepa Joseph
Chief Financial Officer
IR@kenon-holdings.com

 

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SOURCE Kenon Holdings Ltd.

FAQ

How much did Kenon (KEN) receive from the Peru arbitration payment in August 2026?

Kenon received approximately $93 million from the arbitration payment. According to Kenon, this figure reflects its share of a roughly $203 million total payment after allocating proceeds to a capital provider, covering certain expenses, and before considering applicable taxes.

What was the total amount paid by the Republic of Peru in the Kenon (KEN) arbitration case?

The Republic of Peru paid approximately $203 million in total. According to Kenon, this amount covers damages, fees, costs, and pre- and post-award interest related to the ICSID arbitration award issued in October 2023 and its subsequent confirmation.

Does the August 2026 arbitration payment from Peru conclude Kenon’s (KEN) dispute?

Yes, the payment concludes the dispute. According to Kenon, the approximately $203 million payment constitutes final payment of all amounts payable by the Republic of Peru in connection with the arbitration award and marks the conclusion of this matter for the company.

Why is Kenon’s (KEN) share of the Peru arbitration payment lower than the $203 million total?

Kenon’s share is about $93 million because of a funding agreement. According to Kenon, a capital provider is entitled to a return of its capital and a portion of the award proceeds, and certain expenses were also paid from the total amount.

What were the original damages and costs awarded to Kenon (KEN) and IC Power against Peru?

The tribunal ordered Peru to pay $110.7 million in damages plus $6.4 million in fees and costs. According to Kenon, these amounts were awarded together with pre-award and post-award interest following the ICSID arbitration and dismissal of Peru’s annulment application.

Is Kenon’s approximately $93 million arbitration receipt from Peru subject to tax?

Yes, the amount is subject to tax. According to Kenon, its approximately $93 million share from the roughly $203 million payment will be reduced by applicable taxes, meaning the final net cash benefit to the company will be lower than the gross figure.