Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Disclosure of detailed information about financial instruments [abstract]

	For the year ended December
	2021			2020
	€ in thousands
Derivatives presented under current assets
Currency swap		639			12
Forward contracts		-			66
		639			78

Derivatives presented under non-current assets
Financial power swap		-			10,238
Currency swap		2,635			-
		2,635			10,238

Derivatives presented under current liabilities
Swap contracts		(3,431	)		(1,378	)
Financial power swap		(11,352	)		-
		(14,783	)		(1,378	)

Derivatives presented under non-current liabilities
Financial power swap		(9,542	)		-
Currency swap		-			(144	)
Swap contracts		(565	)		(8,192	)
		(10,107	)		(8,336	)

Schedule of Forward and SWAP Contracts

December 31, 2021

Currency/

linkage/interest rate

receivable

Currency/

Linkage/interest rate

Payable

Date of expiration

Fair value - € in

thousand

Euro 17.6 million interest swap transaction for a period of 18 years, semi-annually.

Euribor 6 months

Fixed 1%

December 20, 2037

(706

)

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. Following the refinance of Talasol Project, there were unwinding of the interest rate SWAP in an amount of €3,290 thousand.

Euribor 6 months

Fixed 0.9412%

September 30, 2031

(3,290

)

NIS 100 million currency swap transaction Euro/NIS for a period of 4 years, semi-annually.

NIS

Euro

June 2025

3,274

Financial power swap- Electricity price swap fixed for float

Electricity price in Spain

Fixed price

September 30, 2030

(20,894

)

Schedule of Contractual Maturities of Financial Liabilities

December 31, 2021

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

218,895

240,038

147,127

20,671

18,347

53,892

Debentures

137,299

150,116

24,244

66,481

59,391

Lease liabilities

20,129

25,825

4,832

2,244

2,201

16,548

Trade payables and other accounts payable

22,058

398,381

438,037

198,261

89,396

79,939

70,440

Derivative finance liabilities

Financial power swap

20,894

11,352

14,079

1,961

(6,498

)

Swap contracts

3,996

3,431

234

157

174

24,890

14,783

14,313

2,118

(6,324

)

	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

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

December 31, 2021

Non-monetary/ Non finance

NIS(*)

Unlinked

EURO

Total

€ in thousands

Current assets:

Cash and cash equivalents

30,405

1,090

9,734

41,229

Marketable securities

1,946

Short term deposits

28,410

Restricted cash

1,000

Receivable from concession project

1,784

Trade and other receivables

1,020

739

7,728

9,487

Non-current assets:

Investments in equity accounted investees

25,534

8,495

34,029

Advances on account of investments

1,554

Receivable from concession project

26,909

Fixed assets

340,065

Right-of-use asset

23,367

Intangible asset

4,762

Restricted cash and deposits

6,630

9,000

15,630

Deferred tax

12,952

Long term receivables

1,928

1,272

2,188

5,388

Derivatives

2,635

Current liabilities:

Current maturities of long term bank loans

(2,024

)

(124,156

)

(126,180

)

Current maturities of long term loans

(16,401

)

(16,401

)

Current maturities of debentures

(19,806

)

(19,806

)

Trade payables

(218

)

(2,686

)

(2,904

)

Other payables

(6,882

)

(527

)

(13,397

)

(20,806

)

Current maturities of derivatives

(14,783

)

(14,783

)

Current maturities of lease liabilities

(3,782

)

(547

)

(4,329

)

Non-current liabilities:

Long-term lease liabilities

(5,154

)

(10,646

)

(15,800

)

Long-term loans

(15,803

)

(23,290

)

(39,093

)

Other long-term bank loans

(6,898

)

(30,323

)

(37,221

)

Debentures

(117,493

)

(117,493

)

Deferred tax

(8,836

)

(8,836

)

Derivatives

(10,107

)

(10,107

)

Other long-term liabilities

(3,905

)

(3,905

)

Total exposure in statement

of financial position in

respect of financial assets

and financial liabilities

402,346

(77,321

)

2,509

(214,051

)

113,483

(*) Including items linked to the Israeli CPI

	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
Restricted cash		-			1,491			-			-			1,491
Receivable from concession project		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		2,423			-			-			-			2,423
Receivable from concession project		-			25,036			-			-			25,036
Fixed assets		264,095			-			-			-			264,095
Right-of-use asset		17,209			-			-			-			17,209
Intangible asset		4,604			-			-			-			4,604
Restricted cash and deposits		-			5,882			-			4,049			9,931
Deferred tax		3,605			-			-			-			3,605
Long term receivables		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	)
Current maturities of debentures		-			(10,600	)		-			-			(10,600	)
Trade payables		-			(221	)		-			(12,166	)		(12,387	)
Other payables		-			(974	)		(666	)		(1,953	)		(3,593	)
Current maturities of derivatives		-			-			-			(1,378	)		(1,378	)
Current maturities of lease liabilities		-			(77	)		-			(413	)		(490	)
Non-current liabilities:
Long-term lease liabilities		-			(1,436	)		-			(15,863	)		(17,299	)
Long-term loans		-			(15,520	)		-			(119,000	)		(134,520	)
Other long-term bank loans		-			(5,102	)		-			(44,294	)		(49,396	)
Debentures		-			(72,124	)		-			-			(72,124	)
Deferred tax		(7,806	)		-			-			-			(7,806	)
Derivatives		-			-			-			(8,336	)		(8,336	)
Other long-term liabilities		-			(2,478	)		(486	)		-			(2,964	)
Total exposure in statement
of financial position in
respect of financial assets
and financial liabilities		310,592			(7,647	)		1,945			(179,864	)		125,026

(*) Including items linked to CPI

Schedule of Significant Exchange Rates

For the year ended December 31

Rate of

Change

Dollar

NIS

1 Euro in 2021

(7.7

)

1.132

(10.8

)

3.520

1 Euro in 2020

9.3

1.227

1.7

3.944

Schedule of Sensitivity Analysis

	December 31, 2021
	Increase			Decrease
	Equity			Equity
	€ thousands
Change in the exchange rate of:
5% in the USD		111			(111	)
5% in NIS		(1,098	)		1,098

	December 31, 2020
	Increase		Increase
	Equity		Equity
	€ thousands
Change in the exchange rate of:
5% in the USD		79		(79	)
5% in NIS		290		(290	)

Schedule of Change in Interest Rate

	December 31,
	2021			2020
	Profit or loss			Profit or loss
	€ in thousands
Increase of 1%		2,446			803
Increase of 3%		7,368			2,444
Decrease of 1%		(2,474	)		(836	)
Decrease of 3%		(7,396	)		(2,477	)

Schedule of Statement of Fair value of Other Financial Liabilities

December 31, 2021

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

137,299

140,293

Loans from banks and others (including current maturities)

218,895

223,287

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

356,194

140,293

223,287

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+ 2.53%, fix rate for 5 years 2.9%-3.1% and 4.65% Linkage to Consumer price index in Israel

		280,893		84,814		209,005		-

Schedule of Interest Rates Used to Discount Estimated Cash Flows

December 31

2021

2020

Non-current liabilities:
Loans from banks	Euribor+ 1.76%- 2.75% with a zero floor	Euribor+ 1.76%- 2.75% with a zero floor
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% - 3.55%
Loans from others	Euribor+ 5.27%	Euribor+ 5.27%
Loans from others	7% Linkage to Consumer price index in Israel and fixed rate of 5.5%	3%

Schedule of Fair Values Hierarchy

December 31, 2021

Level 1

Level 2

Level 3

Total

Valuation techniques for

€ in thousands

determining fair value

Marketable securities

1,946

Market price

Swap contracts

(3,996

)

(3,996

)

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

3,274

Dori Energy loan

8,495

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

(20,894

)

(20,894

)

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, 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.

Schedule of Reconciliation Financial Instruments Carried at Fair Value

	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

Total income recognized in profit or loss		799
Grant of loan		335
Repayment		(2,259	)
Foreign Currency translation adjustments		875

Balance as at December 31, 2021		8,495

	Financial assets
	Financial power swap
	€ in thousands

Balance as at December 31, 2019		4,967

Total income recognized in other comprehensive income		5,271

Balance as at December 31, 2020		10,238

Total income is recognized in other comprehensive income		(31,132	)

Balance as at December 31, 2021		(20,894	)