Kenon (NYSE: KEN) keeps $200M Peru arbitration award after ICSID ruling

Rhea-AI Filing Summary

Kenon Holdings reports a favorable decision from an ICSID ad hoc committee that dismissed the Republic of Peru’s application for partial annulment of a prior arbitration award. The committee also ordered Peru to pay approximately $1.3 million toward Kenon’s and IC Power’s legal fees for the annulment proceedings.

As of June 29, 2026, the total arbitration award, including awarded fees, costs and accrued interest, is approximately $200 million. Kenon’s estimated share is about $93 million, including interest and net of certain outstanding arbitration costs, subject to tax. A funding agreement entitles a capital provider, which has committed $12 million to date, to repayment and up to approximately 55% of net claim proceeds, so the ultimate cash benefit to Kenon will depend on this arrangement and on collection of the award.

Positive

• ICSID annulment fully dismissed in Kenon’s favor, confirming the approximately $200 million arbitration award (including interest, fees and costs) against Peru and adding about $1.3 million in cost recovery for defending the annulment application.

Negative

• Litigation funding materially dilutes Kenon’s economics, as the capital provider that has committed about $12 million is entitled to repayment and up to approximately 55% of net claim proceeds, limiting Kenon’s ultimate cash benefit from the award.
• Collection and timing remain uncertain, with explicit risks that the actual amount and timing of any payments to Kenon and IC Power in connection with the award may differ materially from current estimates.

Insights

International arbitration and special situations analyst

ICSID upheld Kenon’s Peru award, but funding and enforcement shape the final economics.

The ICSID ad hoc committee rejected Peru’s bid to partially annul the 2023 arbitration award in favor of Kenon and its subsidiary IC Power. This confirms the award’s validity at ICSID level and adds roughly $1.3 million in cost recovery for defending the annulment attempt.

The award totals about $200 million including damages, fees, costs and roughly $86 million of pre- and post-award interest as of June 29, 2026. Kenon’s estimated share is around $93 million, subject to tax and outstanding arbitration costs. However, a capital provider that has funded about $12 million is contractually entitled to repayment and up to approximately 55% of net proceeds, which will substantially reduce Kenon’s net take.

The filing highlights risks around enforcement, timing and actual amounts that Kenon and IC Power may ultimately receive in connection with the award or any settlement. Future company filings describing progress on collection efforts and any distributions under the funding agreement will be important to understand how much value is ultimately realized from this favorable ruling.

Key Figures

Total award plus interest and costs: $200 million Kenon estimated share: $93 million Damages awarded: $110.7 million +5 more

8 metrics

Total award plus interest and costs $200 million Approximate total as of June 29, 2026

Kenon estimated share $93 million Estimated share including interest, net of some costs, subject to tax

Damages awarded $110.7 million Principal damages amount ordered against Peru

Fees and costs awarded $5.1 million Legal fees and costs awarded with the arbitration

Accrued interest $86 million Pre- and post-award interest as of June 29, 2026

Interest rate 6.91% per annum Post-award interest compounding annually until paid

Cost recovery on annulment $1.3 million Approximate legal fees Peru must pay for annulment defense

Capital provider commitment $12 million Amount committed so far to fund arbitration-related expenses

Key Terms

International Centre for Settlement of Investment Disputes, annulment application, arbitration award, pre-award interest, +2 more

6 terms

International Centre for Settlement of Investment Disputes financial

"an ad hoc committee constituted by the International Centre for Settlement of Investment Disputes"

An international centre for settlement of investment disputes is a neutral, treaty-backed forum that hears and decides legal conflicts between foreign investors and governments, much like a neutral referee for cross-border business fights. Rulings can order compensation or other remedies, so investors watch these proceedings because they affect the safety of overseas investments, potential recoveries after disputes, and the overall political risk of doing business in a country.

annulment application financial

"dismissing Peru’s application for partial annulment in relation to the arbitration award"

arbitration award financial

"in relation to the arbitration award issued by ICSID in October 2023"

pre-award interest financial

"pre-award interest (from November 24, 2017) as well as post-award interest"

post-award interest financial

"post-award interest at a rate of 6.91% per annum, compounding annually"

capital provider financial

"entered into an agreement with a capital provider to provide capital for expenses"

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Form 6-K: How Foreign Companies Report to the SEC →

Available on EDGAR 06/29/2026 - 08:10 AM Accepted by SEC EDGAR 06/29/2026 - 08:10 AM Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

June 29, 2026

Commission File Number 001-36761

Kenon Holdings Ltd.

1 Temasek Avenue #37-02B
Millenia Tower
Singapore 039192
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-201716) OF KENON HOLDINGS LTD. AND IN THE PROSPECTUSES RELATING TO SUCH REGISTRATION STATEMENT.

Exhibits

99.1 Press Release, dated June 29, 2026: ICSID ad hoc Committee Finds in Favor of Kenon Against the Republic of Peru in Annulment Application

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KENON HOLDINGS LTD.
Date: June 29, 2026	By:	/s/ Robert L. Rosen
		Name: Robert L. Rosen
		Title:   Chief Executive Officer

Exhibit 99.1 

ICSID ad hoc Committee Finds in Favor of Kenon Against the Republic of Peru in Annulment Application

Singapore, June 29, 2026. Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) (“Kenon”) announces that an ad hoc committee (the “Committee”) constituted by the International Centre for Settlement of Investment Disputes (“ICSID”) has issued a decision in favor of Kenon and its wholly-owned subsidiary IC Power Ltd. (“IC Power”), rejecting all of the Republic of Peru’s arguments and dismissing Peru’s application for partial annulment in relation to the arbitration award (the “Award”) issued by ICSID in October 2023 against Peru in favor of Kenon and IC Power. The Committee also ordered Peru to pay Kenon and IC Power approximately $1.3 million, which amounts to approximately 50% of their legal fees incurred in defending the annulment application. As of June 29, 2026, the total amount of the Award, together with awarded fees, costs and accrued interest, was approximately $200 million, with Kenon’s estimated share of the Award (as further described below), including interest and net of certain outstanding arbitration costs, approximately $93 million, subject to tax.

As previously disclosed, pursuant to the Award, Peru was ordered to pay Kenon and IC Power a total of $110.7 million in damages together with $5.1 million in fees and costs, and pre-award interest (from November 24, 2017) as well as post-award interest at a rate of 6.91% per annum, compounding annually. As of June 29, 2026, pre- and post-award interest on the Award is approximately $86 million. Interest will continue to accrue until the Award is paid.

Furthermore, as previously disclosed, Kenon and IC Power have entered into an agreement with a capital provider to provide capital for expenses in relation to the pursuit of their arbitration claims against Peru and other costs. In the event that Kenon or IC Power receives proceeds in connection with the Award or settlement thereof, the capital provider will be entitled to be repaid the amount committed by the capital provider (which, to date, has equaled $12 million) and to receive up to approximately 55% of the net claim proceeds, subject to the terms of the agreement among Kenon, IC Power and the capital provider. 

The Award, the ICSID annulment application and related proceedings are described in Kenon’s annual report on Form 20-F for the year ended December 31, 2025.

Caution Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify these statements by the use of words like “may”, “will”, “could”, “should”, “believe”, “expect”, “plan”, “estimate”, “forecast”, “potential”, “intend”, “target”, “future”, and variations of these words or comparable words. These statements include statements relating to the Award and interest accruing thereon and related proceedings, the amount of Kenon’s share of the Award and other non-historical statements. These forward-looking statements are based on current expectations or beliefs, and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties which could cause the actual results to differ materially from those indicated in Kenon’s forward-looking statements. Such risks include risks relating to the Award and enforcement thereof and the agreement with the capital provider including the risks as to the timing and amount, if any, that may be received by Kenon and/or IC Power in connection with the Award and other risks and uncertainties, including those set forth under the heading “Risk Factors” in Kenon’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.

FAQ

What did the ICSID committee decide in favor of Kenon Holdings (KEN)?

An ICSID ad hoc committee rejected all of Peru’s arguments and dismissed its application for partial annulment of the arbitration award. The committee also ordered Peru to pay Kenon and IC Power about $1.3 million toward legal fees for defending the annulment bid.

How large is Kenon Holdings’ arbitration award against Peru as of June 29, 2026?

As of June 29, 2026, the total arbitration award, including damages, fees, costs and accrued interest, is approximately $200 million. This includes roughly $86 million of pre- and post-award interest accruing from November 24, 2017 and after issuance of the award.

What is Kenon Holdings’ estimated share of the Peru arbitration award?

Kenon’s estimated share of the award is approximately $93 million as of June 29, 2026. This figure includes interest and is net of certain outstanding arbitration costs, and is further subject to applicable tax, so it is not the final cash amount Kenon will receive.

How does the capital provider agreement affect Kenon Holdings’ net proceeds?

Kenon and IC Power have a funding agreement under which a capital provider, having committed about $12 million, is entitled to repayment and up to approximately 55% of net claim proceeds. This significantly reduces the ultimate portion of award proceeds available to Kenon shareholders.

What damages and interest did Peru originally owe to Kenon and IC Power?

The award ordered Peru to pay $110.7 million in damages plus $5.1 million in fees and costs, along with pre-award interest from November 24, 2017 and post-award interest at 6.91% per year, compounded annually, until the award is paid in full.

What risks does Kenon Holdings highlight regarding the Peru arbitration award?

Kenon points to risks related to the award and its enforcement, as well as its agreement with the capital provider. These include uncertainty over the timing and amount, if any, that Kenon or IC Power ultimately receives, alongside broader risks described under “Risk Factors” in its Form 20-F.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 EXHIBIT 99.1 7.7 KB