Good morning, ladies and gentlemen. Thank you for standing by, and welcome to Itauza's conference call to discuss the first half of 2021 Results. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at the time. Please press star followed by 0.
As a reminder, this conference is being recorded. A file will be available at the company's website at www.itauza.com.brdem at the Investor Relations section. This conference call and the live presentation are being transmitted via Internet as well. You can access the webcast by logging on to the company's website, www.itauza.com.brtn. Before proceeding, let me mention the forward looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996.
Actual performance could differ materially from that anticipated in any forward looking comments as a result of macroeconomic conditions, market risks and other factors. I inform that during the presentation, The questions can be answered by webcast and will be answered at the section of questions and answers. With us today, we have Mr. Alfredo Liges Fertuba, CEO and Investor Relations Officer at Itauza Mrs. Priscilla Agrico Toledo, CFO at Itauza Mr.
Renato Lule Jacob, Head of IR and Market Intelligence at Itau Unibanco Mrs. Mariana Espirito Santo, Investor Relations Director tour at Alpar Gartas, Mrs. Natasha Uchter, Investor Relations Manager at PESCO. It's now my pleasure to turn the call over to Ms. Priscilla.
Ms. Priscilla, you may now begin.
Hello. Good morning. It's a pleasure We see all of you in our conference call to discuss our results of the 1st semester of this year. Now beginning on Page 5. Regarding the pandemic scenario, Itauza and our investment companies continue to adopt all the security measures regarding our employees and operations, adopting the home working scheme since the beginning of the pandemic and all and many well-being programs.
Also, in order to help the society surpass these difficult moments, Itauza and the companies in our portfolio made donations of more than BRL1.5 billion last year. And this year, The components of our portfolio has also other relevant initiatives, such as the creation of the Instituto Post de la Saude, We find initial contribution of BRL 200,000,000 and donations of food staples, Avallanes Sandoz and many other initiatives. On Page 6, we show some relevant evidence that we have in our governance with the election of 3 investment members and also the creation of 4 advisory committees reporting to the Board of Directors, which are coordinated by independent and external members of the Board. On Page 7, We show some important improvements in the company to increase our transparency and to reinforce the dialogue with our stakeholders. We launched our report integrated report in the Q1 of this year with a new format, more user friendly, with new content and also a new identity.
We also launched this semester our new corporate website and our Instagram profile, bringing some top content and more interactivity with our stakeholders. And coming soon, we will have a new newsletter with a modern, simple and objective language bringing some important topics regarding Itauza and our portfolio. On Page 8, some important recognition we had recently. Itauza received the Great Place to Work certification, recognizing the work we have been done in terms of people management. We had an overall 21% satisfaction rate from our employees, which is a big number and made us very happy with these results.
Also, we appeared for the 2nd time in the STSC for goods index. This is a longer in stock sustainability index and recognize our ESG practice. Going to Page 10. We see some important events in our invested company, Koppenergia. The company launched a new brand with of the proposal to be a benchmark in sustainable energy solutions.
It is also making advances in the synergy integration and capture process. Copa already concluded the system integration, implemented the new corporate governance finalized some commitments assumed with CADE, renegotiated agreements targeting cost reduction and SG and A rationalization and also is starting the logistic flow rationalization process. On Page 11, We commented about some recent events regarding Itau Unibanco's stake in Sisteniqui. On May 31, Itau got FEZ approval for the spin off, results in the creation of Hispars, which is now a new company in our portfolio and the 2nd biggest investment in terms of market value. As already announced, in terms of next steps, We will have the shareholders meeting in the 2nd semester to approve the merge of Chispark into Chispainte.
And if approved, Itauza, Yupari and also the ADR role holders will receive Class A shares. The ratio of exchange of shares may be around 43 shares of Chispaart to one share of Quest A of Chesapeake. After the merger, Itauza will have a stake of around 15% of his payment. And this represents a market value of BRL 18,000,000,000 in total as of today. Going to the next page, Page 12, we comment about our new investment in IGEA.
This investment resulted in an investment amount of BRL 2,500,000,000 in July. And now we have almost 13% of the total capital of the company. And we understand that the Structure sector has high growth potential and attractive return rates, and the company is very well positioned to benefit from the sector growth. And also, we have a very skilled operator and as our partner with a long term vision that is common with Itauza. EISEA is also the leading private company of the base sanitation sector in Brazil and serves around BRL 21,000,000 inhabitants in Brazil.
On Page 14, we see some highlights of Itau Unibanco in the semester. The loan portfolio increased around 12% in the period, mainly in the very small and middle market companies and also individuals. We also saw a relevant decrease of more than 25% in the expected loss when compared with last year related to the credit portfolio. In the Itauza Itau Uniban showed solid results, increasing the recurring net income from BRL 7,600,000,000 to BRL 13,800,000,000, achieving a ROE of 19% in the period. On Page 15, we see some highlights of CICE eight that we now have in our portfolio since the beginning of June.
Register 1 month of the results of this company at Itauza. The company showed a 50 4% increase in its net revenues in the peers, driven by the retail business. The net income achieved around BRL 1,700,000,000 in this 1st semester against BRL900,000,000 last year, reporting ROE of almost 25% 29% in the period. On Page 16, we have some highlights of Alparadares. The company had a net revenue increase in all operations, mainly due to the RGM program, higher volumes and also better pricemix for all the divisions.
And some important evidence in also in the global expansion and growth of the online channels. The company reported a recurring net income of BRL 246,000,000, an increase of more than 120% when compared with last year and reported ROE of 16.7% in the 1st semester. On Page 17, we see some highlights of Bexco. That is the new name of Duratex. And the net revenues of the company increased almost 70% in the first half of this year driven by the maintenance of high level of demand and higher average price and mix in a better mix of products and revenues.
The recurring net income was also almost BRL900,000,000 of high and an increase of more than 5 and 60%, achieving an ROE of almost 18% in the semester. This was the best result in the semester and the best ROE of the company in its history. Going to the next page, Page 18, We see some highlights of Copa Nergia. The company had an increase of 20 strengthening its revenues in the period when compared to the last year and reported a loss in the period of BRL 19,000,000. This was caused by the relevant increase in the cost of raw materials occurred in the semester, with successive price increases made by Petrobras, which was not fully compensated by the company.
On Page 19, we have some highlights of NTS that reported an increase of more than 20% in its revenues as a result of contractual adjustments by inflation. The company reported a net income of BRL 1,500,000,000 in the semester, an increase of 26% when compared with last year. Going to Page 21, We have the financial highlights of Itauza. Itauza reported a recurring net income of BRL5.3 billion, a recurring ROE of almost 18%, which represented a relevant increase in comparison to the last year. We also reported a net debt of BRL 3,900,000,000 and the net equity of BRL 61,000,000,000.
On Page 22, we see our capital structure. After the debentures we issued in the semester and in the last year, the end of the last year to fund compagas and also the IGA investments. We now have a 5.6% leverage, showing our high leverage capacity and the prudent financial management of the company. On Page 23, we have the payment schedule of the principal amount of our financial debt. As you see, the average term of our debt is 6 years, and the cost is around CDE +1.6 percent.
On Page 24. We see the dividend and interest on capital that we received in the first half of the year from MTS and Itau Unibanco and the amount we paid or will pay to our shareholders regarding the first semester of the results of the company. In this semester, the amount paid or payable totalized BRL 1,400,000,000 with a 25% payout, which represents 2.7% dividend yield in the period. We also acquired 4,000,000 preferred shares under our buyback program in this semester. On next page, Page 25, we show the current level of discount of Itauza.
There is almost 24% discount. And if we include the market value of our Taking CICE, which is BRL 18,000,000,000 without changing the market value of Itau and Itauza in this exercise. The discount level of Itauza goes to almost 24%. And in the next page, to conclude my presentation, I would like to invite all of you to our live event, the Panorama Itauza, that will take place on September 28 at 10 p. M.
So we now open for the Q and A session. Thank you.
Thank you. Ladies and gentlemen, we will now begin the question and answer Please restrict your questions to 2 at a time. Our first question comes from Mr. Tito Labarca with Goldman Sachs.
Hi, good morning. Thank you for the call and for taking my question. A couple of questions. I guess first on the stake in XP, you mentioned here that you'll be limited to 6 block trades over 12 months. Any indication you can give in terms of the timing to exit?
I think you said in the past that you don't see it as strategic, but you may not sell immediately. And is there any limitation on the size of those blocks that you could sell? And then my second question more on the of the pending tax reform. And any color you can provide on given the current iteration that's going to Congress, what would be your expectations for the impact that that would have Thank you.
Hello, Tito and Alfredo. Thank you for the participation and for the questions. In the case of Schispe, we see Schispe as a very good investment in our portfolio. We believe in the future of the company. We believe the company will continue to grow.
I think the diverting decision of the bank was to pass to the shareholders the group value creation that was done during the period that the bank holds its stake. Saying that, we are not in a hurry to sell the participation that we have at Chesapeake. We announced that there is not a strategic investment. That's the why That's only why we are in a portfolio management activity that is out of the financial services investment that we are doing. So Syspe is part of a financial service company.
It's a financial service company. So In the long term, we don't see this investment as strategic for Itauza. Itauza wants to continue the creation of the new portfolio in the in other sectors of the financial services. We are not intending to sell sheet paper certification tests. We have many years to do that.
We are not in a hurry to do that. When we mentioned that we made We'll just be in some way out through block trades and other kind of operations. Is just to have the chance and the opportunity to decide if we want or not to participate or do This kind of block trades or sales, depending on the transaction that they have been Doing through SSP, through other investors, through Itauza. So we have the opportunity to decide if we want to do or not. It doesn't mean that we are going to do.
Our intention is to keep this investment for some periods and use The sale the money from the sales that we incur over the years To pay debt or to pay dividends or to invest in other companies or to buy back shares. So we at the level of the Board member, we will discuss which one of these alternatives will be the best use of this capital, always looking to the return and for our shareholders. So it's a long it's a medium to long time investment in our portfolio. But we believe at the end of some many years. We are not being shareholders of SSP anymore.
In the case of the tax reform that I under discussion in the Congress, I think it's too early to say because there are many discussions of what will be approved or not, what will be approved in the lower house, what will be approved in the of the S and A. So I think the it is a little bit early But what we can say if the law is approved As it is today, it's not bad for Itauza specifically because we are not going to have The fiscal expenses of the PISCOFINS over the GT all interest over capital that we received. So this is it's range depends on the year of the payout of the companies that we invest in the last years. The range was BRL300 1,000,000 to BRL500 BRL 1,000,000 in expenses. So this was the most important expense of the holding that it may be can disappear with the end of the interest over capital.
In general, we see for Itauza probably the results of the companies that we invest will increase due to the level of profitability of them and also because of the reduction of the taxes paid by the companies. But at the end, of course, we will have taxes over the dividends to be paid to the shareholders. But if you will look only for the company before distribution of dividends. The results of Itauza probably will grow.
Thanks, Alfredo. That's very helpful. So just one follow-up on the XP. So my sense is you're not selling for now, but was there any limitation on the size of any block trade or if you wanted to sell in 1 block trade, I mean, given the size, it may be difficult, but just to get a sense, any limitation on that or that will be completely up to you and the Board to decide on how quickly you get out once you decide to do that. And I understand it's not in the short term.
As I said, we don't intend to we intend, let's put it the other way, we intend to keep our shareholders on For a long time, but we are going to reduce over the years, the coming years According to the price, to the perspectives of the company, to the liquidity of the market, Many, many factors will influence our decision to sell or not to sell any stake in Chispay in the coming year. So it's difficult to give you a precise answer. But anyway, we as I said, we are happy and confident with the future of the And we will reduce the participation because it's not strategic for Itauza that wants to create a portfolio of non financial companies. The only financial that we see in our portfolio in the future is the shares of Itaulli Banco Holdings. So this pay will be reduced our stake over the years according to the liquidity key and perspectives of the company.
Perfect. Very helpful. Thank you, Alfredo.
This concludes today's question and answer session. Ms. Priscilla, at this time, you may proceed with your closing statements.
Okay. We'd like to thank you all for the participation in this call. As you saw, Itauza reported solid results, showing an important increase against the last year. And I would like to invite you once more for our live Panorama Itauza that will take place on September 28, where we will share with all of our investors, the strategy and perspectives of Itauza and the companies of our portfolio. Thank you and have a good day.
That does conclude our Itauza's 2021 results conference for today. Thank you very much for your participation.