Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of detailed information about financial instruments [abstract]

In order to manage these risks and as described hereunder, the Company executes transactions in derivative financial instruments. Presented hereunder is the composition of the derivatives:

	For the year ended December
	2020			2019
	€ in thousands
Derivatives presented under current assets
Currency swap		12			94
Forward contracts		66			-
		78			94
Derivatives presented under non-current assets
Financial power swap		10,238			4,967
Currency swap		-			103
Forward contracts		-			92
		10,238			5,162
Derivatives presented under current liabilities
Swap contracts		(1,378	)		(766	)

Derivatives presented under non-current liabilities
Forward contracts		-			(344	)
Currency swap		(144	)		-
Swap contracts		(8,192	)		(6,919	)
		(8,336	)		(7,263	)

Schedule of Forward and SWAP Contracts

The following table sets forth the details of the Company’s Forward and SWAP contracts with banking institutions:

	December 31, 2020
	Currency/	Currency/
	linkage/interest rate	Linkage/interest rate		Fair value - € in
	receivable	Payable	Date of expiration	thousand
Euro 17.6 million interest swap transaction for a period of 18 years, semi-annually.	Euribor 6 months	Fixed 1%	December 20, 2037	(1,199	)
The principal of the interest rate swap transaction is based on a pre-determined sculptured repayment schedule in the maximum amount of Euro 131 million for a period of 12 years, semi-annually.	Euribor 6 months	Fixed 0.9412%	September 30, 2031	(8,371	)
Forward Euro/NIS contracts with an aggregate Euro denominated principal of Euro 8 million.	weighted average rate of approximately 4.03		January 2021	66
NIS 83.2 million currency swap transaction Euro/NIS for a period of 7 years, semi-annually.	NIS	Euro	June 2024	(132	)
Financial power swap- Electricity price swap fixed for float	Electricity price in Spain	Fixed price	September 30, 2030	10,238

Schedule of Contractual Maturities of Financial Liabilities

The following are the contractual maturities of financial liabilities at undiscounted amounts and based on the spot rates at the reporting date, including estimated interest payments. This disclosure excludes the impact of netting agreements:

	December 31, 2020
	Carrying		Contractual		Less than							More than
	amount		cash flows		1 year			2 years		3-5 years		5 years
	€ in thousands
Non-derivative financial liabilities

Long term loans, including current maturities		198,169		263,112		20,896			34,645		32,594		174,977

Debentures		82,724		91,431		13,502			33,368		44,561		-

Lease liabilities		17,789		28,910		1,051			1,941		1,799		24,119

Trade payables and other accounts payable		13,706		13,706		13,706			-		-		-
		312,388		397,159		49,155			69,954		78,954		199,096
Derivative finance liabilities

Currency swap		132		132		(12	)		63		81		-

Swap contracts		9,570		9,570		1,378			2,490		2,109		3,593
		9,702		9,702		1,366			2,553		2,190		3,593

	December 31, 2019
	Carrying		Contractual		Less than						More than
	amount		cash flows		1 year		2 years		3-5 years		5 years
	€ in thousands
Non-derivative financial liabilities

Long term loans, including current maturities		93,320		100,415		5,075		9,041		19,154		67,145

Debentures		71,584		78,235		28,718		8,615		33,899		7,003

Lease liabilities		15,627		25,859		462		806		2,417		22,174

Trade payables and other accounts payable		2,928		2,928		2,928		-		-		-
		183,459		207,437		37,183		18,462		55,470		96,322
Derivative finance liabilities

Forward contracts		252		252		-		252		-		-

Swap contracts		7,685		7,685		766		2,682		2,172		2,065
		7,937		7,937		766		2,934		2,172		2,065

Schedule of Company's Exposure to Linkage and Foreign Currency Risk

The Company's exposure to linkage and foreign currency risk was as follow:

	December 31, 2020
	Non-monetary/ Non finance			NIS(*)			Unlinked			EURO			Total
	€ in thousands

Current assets:
Cash and cash equivalents		-			50,195			952			15,698			66,845
Marketable securities		-			-			1,761			-			1,761
Short term deposits		-			8,113			-			-			8,113
Asset from concession project		-			1,491			-			-			1,491
Trade and other receivables		380			3,155			384			5,906			9,825
Non-current assets:
Investments in equity
accounted investees		23,489			8,745			-			-			32,234
Advances on account of
investments in process		2,423			-			-			-			2,423
Asset from concession project		-			25,036			-			-			25,036
Fixed assets		264,095			-			-			-			264,095
Right of use asset		-			1,463			-			15,746			17,209
Concession intangible asset		4,604			-			-			-			4,604
Restricted cash long-term		-			5,882			-			4,049			9,931
Deferred tax		3,605			-			-			-			3,605
Other assets		2,593			30			-			139			2,762
Derivatives		-			-			-			10,238			10,238
Current liabilities:
Current maturities of long term bank loans		-			(1,762	)		-			(8,470	)		(10,232	)
Current maturities of long term loans		-			-			-			(4,021	)		(4,021	)
Short-term debentures		-			(10,600	)		-			-			(10,600	)
Trade payables		-			(221	)		-			(12,166	)		(12,387	)
Accrued expenses and
other payables		-			(3,502	)		(666	)		(3,744	)		(7,912	)
Non-current liabilities:
Lease liability		-			(1,436	)		-			(15,863	)		(17,299	)
Liabilities to banks		-			(15,520	)		-			(119,000	)		(134,520	)
Other long-term loans		-			(5,102	)		-			(44,294	)		(49,396	)
Long-term debentures		-			(72,124	)		-			-			(72,124	)
Deferred tax		(7,806	)		-			-			-			(7,806	)
Derivatives		-			-			-			(8,336	)		(8,336	)
Other long-term liabilities		-			(27	)		(486	)		-			(513	)
Total exposure in statement
of financial position in
respect of financial assets
and financial liabilities		293,383			(6,184	)		1,945			(164,118	)		125,026

(*) including items linked to CPI

	December 31, 2019
	Non-monetary/ Non finance			NIS(*)			Unlinked		EURO			Total
	€ in thousands

Current assets:
Cash and cash equivalents		-			23,385			1,517		19,607			44,509
Marketable securities		-			-			2,242		-			2,242
Short term deposits		-			6,446			-		-			6,446
Restricted cash		-			22,162			-		-			22,162
Asset from concession project		-			1,463			-		-			1,463
Financial asset short-term		-			1,418			-		-			1,418
Trade and other receivables		304			1,199			396		2,983			4,882
Non-current assets:
Investments in equity
accounted investees		26,131			7,430			-		-			33,561
Advances on account of
investments in process		883			-			-		-			883
Asset from concession project		-			27,122			-		-			27,122
Fixed assets		114,389			-			-		-			114,389
Right of use asset		-			1,585			-		13,816			15,401
Concession intangible asset		5,042			-			-		-			5,042
Restricted cash long-term		-			5,639			-		5,317			10,956
Deferred tax		2,285			-			-		-			2,285
Other assets		12,218			31			-		-			12,249
Derivatives		-			-			-		5,162			5,162
Current liabilities:
Loans and borrowings		-			(1,669	)		-		(2,469	)		(4,138	)
Short-term debentures		-			(26,773	)		-		-			(26,773	)
Trade payables		-			(266	)		-		(1,499	)		(1,765	)
Accrued expenses and
other payables		-			(3,519	)		-		(1,491	)		(5,010	)
Non-current liabilities:
Lease liability		-			(1,529	)		-		(13,873	)		(15,402	)
Long-term loans		-			(19,409	)		-		(69,773	)		(89,182	)
Long-term debentures		-			(44,811	)		-		-			(44,811	)
Deferred tax		(6,467	)		-			-		-			(6,467	)
Derivatives		-			-			-		(7,263	)		(7,263	)
Other long-term liabilities		-			(28	)		-		(1,767	)		(1,795	)
Total exposure in statement
of financial position in
respect of financial assets
and financial liabilities		154,785			(124	)		4,155		(51,250	)		107,566

(*) Including items linked to CPI

Schedule of Significant Exchange Rates

Information regarding significant exchange rates:

	For the year ended December 31
	Rate of					Rate of
	Change					Change
	%			Dollar		%			NIS
1 Euro in 2020		9.3			1.227		1.7			3.944
1 Euro in 2019		(2	)		1.122		(9.6	)		3.878

Schedule of Sensitivity Analysis

This analysis is based on foreign currency exchange rate that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant.

	December 31, 2020
	Increase		Decrease
	Equity		Equity
	€ thousands
Change in the exchange rate of:
5% in the USD		79		(79	)
5% in NIS		308		(308	)

	December 31, 2019
	Increase		Increase
	Equity		Equity
	€ thousands
Change in the exchange rate of:
5% in the USD		185		(185	)
5% in NIS		412		(412	)

Schedule of Change in Interest Rate

A change in interest rate would have increased (decreased) profit or loss by the amounts shown below:

	December 31,
	2020			2019
	Profit or loss			Profit or loss
	€ in thousands
Increase of 1%		803			580
Increase of 3%		2,444			1,701
Decrease of 1%		(836	)		(542	)
Decrease of 3%		(2,477	)		(1,663	)

Schedule of Statement of Fair value of Other Financial Liabilities

The fair values of the other financial liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

	December 31, 2020
			Fair value
	Carrying								Valuation techniques for	Inputs used to
	amount		Level 1		Level 2		Level 3		determining fair value	determine fair value
	€ in thousands
Non-current liabilities:
Debentures		82,724		84,814		-		-
Loans from banks and others (including current maturities)		198,169		-		209,005		-	Discounting future cash flows by the market interest rate on the date of measurement.	Discount rate of Euribor+ 1.76%- 2.75% with a zero floor, Euribor+ 5.27%, fix rate for 5 years 2.9%-3.55% and 4.65% Linkage to Consumer price index in Israel

		280,893		84,814		209,005		-

	December 31, 2019
			Fair value
	Carrying								Valuation techniques for	Inputs used to
	amount		Level 1		Level 2		Level 3		determining fair value	determine fair value
	€ in thousands
Non-current liabilities:
Debentures		71,584		73,211		-		-
Loans from banks and others (including current maturities)		93,320		-		94,677		-	Discounting future cash flows by the market interest rate on the date of measurement.	Discount rate of Euribor+ 2.53%, fix rate for 5 years 2.9%-3.1% and 4.65% Linkage to Consumer price index in Israel

		164,904		73,211		94,677		-

Schedule of Interest Rates Used to Discount Estimated Cash Flows

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows:

	December 31
	2020	2019
	%
Non-current liabilities:
Loans from banks	Euribor+ 1.76%- 2.75% with a zero floor	Euribor+ 2.53%
Loans from banks	4.65% Linkage to Consumer price index in Israel	4.65% Linkage to Consumer price index in Israel
Loans from banks	fix rate for 5 years 2.9% - 3.55%	fix rate for 5 years 2.9% - 3.1%
Loans from others	Euribor+ 5.27%	Euribor+ 5.27%
Loans from others	3%	-

Schedule of Fair Values Hierarchy

	December 31, 2020
	Level 1		Level 2			Level 3		Total			Valuation techniques for
	€ in thousands										determining fair value
Marketable securities		-		1,761			-		1,761		Market price
Forward contracts		-		66			-		66		Fair value measured on the basis of discounting the difference between the forward price in the contract and the current forward price for the residual period until redemption using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Swap contracts		-		(9,570	)		-		(9,570	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap		-		(132	)		-		(132	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan		-		-			8,745		8,745		The fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 10% and the expected yearly change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap		-		-			10,238		10,238		Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

	December 31, 2019
	Level 1		Level 2			Level 3		Total			Valuation techniques for
	€ in thousands										determining fair value
Income receivable in connection with the A.R.Z. electricity pumped storage project (see Note 6B)		-		-			1,418		1,418		The fair value of the income receivable in connection with the A.R.Z. electricity pumped storage project was calculated according to the cash flows expected to be received in 4.5 years following the financial closing of the project, discounted at a weighted interest rate of 2.36% reflecting the credit risk of the debtor.
Marketable securities		-		2,242			-		2,242		Market price
Forward contracts		-		(252	)		-		(252	)	Fair value measured on the basis of discounting the difference between the forward price in the contract and the current forward price for the residual period until redemption using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Swap contracts		-		(7,685	)		-		(7,685	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap		-		197			-		197		Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan		-		-			10,595		10,595		The fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 10% and the expected yearly change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap		-		-			4,967		4,967		Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

Schedule of Reconciliation Financial Instruments Carried at Fair Value

The table hereunder presents reconciliation from the beginning balance to the ending balance of financial instruments carried at fair value in level 3 of the fair value hierarchy:

	Financial assets
	Income receivable in connection with the A.R.Z. electricity
	pumped storage project
	€ in thousands
Balance as at December 31, 2019		1,418

Total amount paid		1,418

Balance as at December 31, 2020		-

	Financial assets
	Dori Energy loan
	€ in thousands

Balance as at December 31, 2019		10,595

Total income recognized in profit or loss		758
Repayment		(2,378	)
Foreign Currency translation adjustments		(230	)

Balance as at December 31, 2020		8,745

	Financial assets
	Financial power swap
	€ in thousands

Balance as at December 31, 2019		4,967

Total income is recognized in other comprehensive income		5,271

Balance as at December 31, 2020		10,238