Note 25 - Financial Instruments

Financial risk management policy

The Company’s activities expose it to various financial risks, as specified below. The Group’s overall risk management policy focuses on activities to minimize possible negative effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge against certain risk exposures.

The individual responsible for the management of market risks in the Company is the Company’s CFO, who reports to the board of directors and to the financial statements review committee from time to time regarding his activities, in order to reduce the Company’s market risks, and the impact thereof on its operating results.

The Company’s policy is to reduce the various risks to the lowest possible minimum. The Company directs risk management towards economic exposure only if there is a discrepancy between that exposure and the accounting exposure.

The CFO also reports to the required organs in the Company on an ongoing basis regarding the status of the Company’s liquid balances and the balances of its liabilities, and regarding the composition thereof.

The Company’s activities expose it to various financial risks, as follows:

(1)

Changes in foreign currency exchange rates

Some of the Company’s costs involved in project construction, finance costs, transactions and revenues are denominated in foreign currency, and the Company is therefore exposed to changes in those exchange rates, which affect the feasibility and profitability of the projects. The Company evaluates and makes use, from time to time, of derivative financial instruments, mostly forward transactions and currency options (hedging transactions”), to hedge its economic exposure to changes in foreign currency exchange rates. All of derivative financial instrument below is treated under accounting hedging.

Amount
receivable in
transaction
currency

Amount
payable in
transaction
currency

Fair value

Project

Millions

Expiration date

USD millions

Foreign currency forward contracts (1)

Ruach Beresheet

EUR 22

NIS 82

February - March 2023

0.4

Purchase of call options and sale of put options (1)

Storage

USD 45.5

NIS 156.1

January 2023

1.1

(1)

Hedging transaction to hedge against the EUR/NIS exchange rate and the USD/NIS exchange rate, based on the schedule of payments to the EPC contractor.

Presented below is a sensitivity analysis which includes current balances of monetary items denominated in foreign currency, and which adjusts the translation thereof at the end of the period, to changes in the foreign currency exchange rate. The sensitivity analysis also includes loans to foreign operations in the Group which are denominated in a currency other than the currency of the lender or the borrower, which do not constitute a part of the net investment in the foreign operation (hereinafter: “loans to foreign operation”). The Company is also exposed to the equity in respect of its share in consolidated companies with a different functional currency from the Company’s functional currency (hereinafter: the “equity of foreign operation”). This exposure is carried to other comprehensive income (hereinafter: “OCI”).

	As of December 31, 2022
	Increase 5%									Decrease 5%
	OCI			Pre-tax profit			Value			Pre-tax profit			OCI
5% Change in the currency exchange rate	USD in thousands

ILS vs EURO
Loans to foreign operations		-		(844		)		16,874			844		-

EURO vs HRK
Restricted cash		-			84			1,673			(84	)	-
Loans to foreign operations		-			174			3,489			(174	)	-
Loans from banks		-			(1,399	)		(27,974	)		1,399		-
Total effect on pre-tax profit		-			(1,985	)		(5,938	)		1,985		-

Equity of foreign operations
ILS vs EURO		(34,695	)		-			693,904			-			34,695
ILS vs HUF		(551	)		-			11,015			-			551
ILS vs HRK		(613	)		-			12,258			-			613
Total effect OCI		(35,859	)		-			717,177			-			35,859

	As of December 31, 2021
	Increase 5%									Decrease 5%
	OCI			Pre-tax profit			Value			Pre-tax profit			OCI
5% Change in the currency rate	USD in thousands

ILS vs EURO
Loans to foreign operations		-			(1,026	)		20,513			1,026			-

EURO vs HRK
Restricted cash		-			89			1,175			(89	)		-
Loans to foreign operations		-			180			3,605			(180	)		-
Loans from banks		-			(1,626	)		(32,529	)		1,626			-
Total effect on pre-tax profit		-			(2,383	)		(7,236	)		2,383			-

Equity of foreign operations
ILS vs EURO		(28,710	)		-			574,198			-			28,710
ILS vs HUF		(267	)		-			5,340			-			267
ILS vs HRK		(486	)		-			9,714			-			486
Total effect on OCI		(29,463	)		-			589,252			-			29,463

(2)

Change in index

Consolidated entities in Israel have revenues from electricity which are determined according to a tariff which is updated once per year in accordance with the consumer price index. On the other hand, loans taken out by consolidated entities were made, as much as possible, with the same linkage as the linkage to the electricity tariff. The Company also extended loans to investee entities and liability in respect of deferred consideration arrangement, which are linked to the consumer price index.

The following table presents the group's sensitivity to the index – the effect of a 3% change in the index:

	As of December 31, 2022
	Increase 3%						Decrease 3%
	Pre-tax profit			Carrying value			Pre-tax profit
3% Change in the index rate	USD in thousands

Financial assets measured at fair value through profit or loss		389			12,974		(389		)
Contract assets		3,203			106,773		(3,203		)
Loans to investee entities		199			6,622		(199		)
Loans to non-controlling interests		170			5,680		(170		)
Other payables		(34	)		(1,143	)		34
Loans from banks and other financial institutions		(15,570	)		(790,403	)		15,491
Other financial liabilities		(78	)		(2,584	)		78

		(11,721	)		(662,081	)		11,642

	As of December 31, 2021
	Increase 3%						Decrease 3%
	Pre-tax profit			Carrying value			Pre-tax profit
3% Change in the index rate	USD in thousands

Financial assets measured at fair value through profit or loss		435			14,506		(435		)
Contract assets		8,611			287,042		(8,611		)
Loans to investee entities		735			24,495		(735		)
Loans to non-controlling interests		197			6,561		(197		)
Other payables		(26	)		(858	)		26
Loans from banks and other financial institutions		(11,999	)		(761,897	)		9,749
Other financial liabilities		(89	)		(2,956	)		89

		(2,136	)		(433,107	)		(114	)


	B.	Financial risk factors

(1)

Presented below is an analysis of financial instruments by linkage bases and currency types

	As of December 31, 2022
	Linked to the EUR			Linked to the USD			Linked to the HRK*			Linked to the HUF			Linked to the CPI			Unlinked			Total
	USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands

Current assets:
Cash and cash equivalents		56,327			1,582			49,535			2,752		-				83,673			193,869
Deposits in banks		4,054			-			-			-		-				-			4,054
Restricted cash		16,551			-			3,732			558		-				71,262			92,103
Financial assets measured at fair value through profit or loss		-			366			-			-			12,974			20,555			33,895
Trade receivables		29,074			785			601			325			-			9,037			39,822
Other receivables		880			-			-			-			427			4,872			6,179
Current maturities of loans to investee entities		-			-			-			-			-			13,893			13,893
Other financial assets		-			-			-			-			-			1,493			1,493

		106,886			2,733			53,868			3,635			13,401			204,785			385,308

Non-current assets:
Restricted cash		20,140			-			1,281			3,782			-			13,525			38,728
Long term receivables		4,765			-			-			-			-			2			4,767
Financial assets measured at fair value through profit or loss		42,918			-			-			-			-			-			42,918
Loans to equity-accounted entities		3,429			-			-			-			6,622			4,133			14,184
Other financial assets		78,811			-			-			10,332			5,253			-			94,396

		150,063			-			1,281			14,114			11,875			17,660			194,993
Current liabilities:
Credit and current maturities in respect of loans from banks and other financial institutions		(54,071	)		(75,576	)		(1,585	)		(1,535	)		(32,860	)		-			(165,627	)
Trade payables		(13,532	)		(15,495	)		-			(68	)		-			(5,543	)		(34,638	)
Other payables		(20,920	)		(15,567	)		(1,242	)		(240	)		(1,143	)		(28,925	)		(68,037	)
Current maturities in respect of Debentures		-			-			-			-			-			(15,832	)		(15,832	)
Current maturities of lease liability		(1,528	)		-			-			(80	)		(4,202	)		(40	)		(5,850	)
Financial liabilities measured at fair value through profit or loss		-			(35,283	)		-			-			-			-			(35,283	)
other financial liabilities		(50,255	)		-			-			-			-			-			(50,255	)

		(140,306	)		(141,921	)		(2,827	)		(1,923	)		(38,205	)		(50,340	)		(375,522	)

Non-current liabilities:
Debentures		-			-			-			-			-			(238,520	)		(238,520	)
Convertible Debentures		-			-			-			-			-			(131,385	)		(131,385	)
Loans from banks and other financial institutions		(572,166	)		(42,797	)		(14,358	)		(32,193	)		(757,543	)		-			(1,419,057	)
Loans from non-controlling interests		(76,787	)		-			-			-			-			(14,121	)		(90,908	)
Lease liability		(33,769	)		-			-			(1,134	)		(58,535	)		(335	)		(93,773	)
Employee benefits		-			(12,238	)		-			-			-			-			(12,238	)
Financial liabilities through profit or loss		-			(45,484	)		-			-			(2,584	)		-			(48,068	)

		(682,722	)		(100,519	)		(14,358	)		(33,327	)		(818,662	)		(384,361	)		(2,033,949	)

Total assets (liabilities), net		(566,079	)		(239,707	)		37,964			(17,501	)		(831,591	)		(212,256	)		(1,829,170	)

*On December 31, 2022 the EURO currency replaces the HRK

	As of December 31, 2021
	Linked to the EUR			Linked to the USD			Linked to the HRK			Linked to the HUF			Linked to the CPI			Unlinked			Total
	USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands
Current assets:
Cash and cash equivalents		54,293			1,837			25,394			1,946		-				182,463			265,933
Restricted cash		17,058			-			-			-		-				18,121			35,179
Financial assets measured at fair value through profit or loss		-			515			-			-			14,506			24,343			39,364
Trade receivables		11,521			1,752			635			133			-			3,859			17,900
Other receivables		2,607			-			40			-			456			1,855			4,958
Other short term financial assets		-			-			-			-			-			9,999			9,999

		85,479			4,104			26,069			2,079			14,962			240,640			373,333

Non-current assets:
Restricted cash		11,989			-			-			1,917			-			7,462			21,368
Long term receivables		5,247			-			-			-			-			-			5,247
Financial assets measured at fair value through profit or loss		28,682			-			-			-			-			-			28,682
Current maturities of loans to investee entities		874			-			-			-			24,200			1,190			26,264
Other financial assets		3,852			-			-			3,605			6,105			-			13,562

		50,644			-			-			5,522			30,305			8,652			95,123

Current liabilities:
Credit and current maturities in respect of loans from banks and other financial institutions		(28,032	)		-			(1,639	)		(1,596	)		(30,555	)		-			(61,822	)
Trade payables		(21,576	)		(1,453	)		(275	)		(5	)		-			(4,108	)		(27,417	)
Other payables		(27,552	)		(3,887	)		(134	)		(200	)		(858	)		(9,764	)		(42,395	)
Other financial liabilities		(18,679	)		-			-			-			-			(8,923	)		(27,602	)
Current maturities in respect of Debentures		-			-			-			-			-			(17,914	)		(17,914	)
Current maturities of lease liability		(1,039	)		-			-			(82	)		(4,521	)		(44	)		(5,686	)
Financial liabilities measured at fair value through profit or loss		-			(14,567	)		-			-			-			-			(14,567	)

		(96,878	)		(19,907	)		(2,048	)		(1,883	)		(35,934	)		(40,753	)		(197,403	)

Non-current liabilities:
Debentures		-			-			-			-			-			(286,656	)		(286,656	)
Convertible Debentures		-			-			-			-			-			(100,995	)		(100,995	)
Loans from banks and other financial institutions		(381,552	)		-			(16,945	)		(38,730	)		(731,342	)		-			(1,168,569	)
Loans from non-controlling interests		(62,841	)		-			-			-			-			(15,272	)		(78,113	)
Lease liability		(35,385	)		-			-			(1,180	)		(62,989	)		(406	)		(99,960	)
Other long term payables		(1,132	)		-			-			-			-			-			(1,132	)
Financial liabilities through profit or loss		-			(74,996	)		-			-			(2,956	)		-			(77,952	)
Other financial liabilities		(15,300	)		-			-			-			-			-			(15,300	)

		(496,210	)		(74,996	)		(16,945	)		(39,910	)		(797,287	)		(403,329	)		(1,828,677	)

Total assets (liabilities), net		(456,965	)		(90,799	)		7,076			(34,192	)		(787,954	)		(194,792	)		(1,557,626	)

(2)

Interest rate risk

Change in interest rates

Interest rate risk is due to loans bearing variable interest rates, which expose the Company to cash flow risk.

The following table presents the group's values of financial instruments which are exposed to cash flow risks in respect of interest rate changes which are not hedged in interest rate swap transactions and their sensitivity to the change of interest rate – the effect of a 2% change in the interest rate:

	As of December 31, 2022
	Increase 2%		Carrying		Decrease 2%
	Pre-tax profit		value		Pre-tax profit
2% Change in the interest rate	USD in thousands

Euribor-linked credit from banks	(22	)	(1,115	)		22
Euribor-linked loan from banks	(873	)	(43,649	)		873
SOFR-linked credit from banks (1)	-		(118,373	)		-

	(895	)	(163,137	)		895

	As of December 31, 2021
	Increase 2%			Carrying			Decrease 2%
	Pre-tax profit			value			Pre-tax profit
2% Change in the interest rate	USD in thousands

Euribor-linked loan from banks	(25		)	(1,259		)		25
Euribor-linked credit from banks (2)	-			(67,281		)		-

		(25	)		(68,540	)		25

	(1)	As of December 31, 2022, a project company in the USA is in the construction stage has a loan which are linked to the SOFR interest rate. Interest expenses during the construction period are capitalized to the cost of the facility, and have no impact on the Company’s results.

	(2)	As of December 31, 2021, project companies in the construction stage in Spain, Kosovo and Sweden have short term loans in respect of value added tax payments which are linked to the Euribor interest rate. Interest expenses during the construction period are capitalized to the cost of the facility, and have no impact on the Company’s results.

Interest rate swaps:

Through interest rate swaps, the Group engages in contracts to swap the differences between the amounts of fixed and variable interest rates, which are calculated in respect of agreed-upon stated principal amounts. These contracts allow the Group to reduce the cash flow exposure of debt issued at variable interest. The fair value of the interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the yield curves at the end of the reporting period, and the credit risk in the contract.

All interest rate swaps which replace variable interest rates with fixed interest rates are intended to hedge cash flows in order to reduce the Group’s exposure to cash flows from variable interest rates on loans. For details regarding the Group’s accounting policy regarding cash flow hedging, see Note 2Q(3)(A).

The following table specifies the interest rate swap contracts which were designated as hedging instruments, which exist as of the end of the reporting period:

	Interest rates		Par value	Repayment date	Carrying value
Hedged contract	Original	After hedging	Thousands	Final	USD in thousands
Loan to finance the Lukovac project	3 month Euribor	0.75%	20,397 EURO 21,753 USD	31/03/2031	2,063
Loan to finance the Picasso project	3 month Euribor	1.08%	75,268 EURO 80,273 USD	31/03/2039	6,406
Loan to finance the Gecama project	6 month Euribor	0.147%	152,000 EURO 162,107 USD	30/06/2035	32,811
Loan to finance the Raaba and Meg projects	3 month Bubor	1.445%-3.7%	12,930,492 HUF 34,454 USD	31/12/2030	10,332
Loan to finance the Bjorn project	6 month Euribor	0.526%	164,485 EURO 175,423 USD	30/06/2041	37,531

During the years 2022 and 2021, profit net of tax in the amount of USD 61,853 thousand and USD 17,823 thousand, respectively, were recognized under other comprehensive income, in respect of the effectiveness of the cash flow hedge as a hedge against the cash flow risk in respect of interest rates.

(3)

Credit risk

Credit risk refers to the risk that the counterparty will not fulfill its contractual obligations, and will cause the Group to incur financial loss. Upon the initial engagement, the Group estimates the quality of the credit which is given to the customer. The restrictions which are attributed to the Group’s customers are evaluated once per year, or more frequently, based on new information which has been received, and on its fulfillment of previous debt payments.

The Group measures the credit loss provision in respect of trade receivables according to the probability of insolvency throughout the instrument’s entire lifetime, and for contract assets in respect of concession arrangements (see Note 8) according to the probability of insolvency during the coming 12 months. In light of the fact that the Company’s customers are large, financially strong entities, mostly with regulatory support, the probability of insolvency is low, and the Company believes that the expected credit losses in respect of them are insignificant.

The Company deposits its balance of liquid financial assets in bank deposits and in securities. All the deposits are with a diversified group of leading banks preferably with banks that provide loans to the Company.

(4)

Liquidity risk

The cash flow forecast is prepared by the Company’s finance department, both on the level of the various entities in the Group, and in consolidated terms. The finance department evaluates current forecasts of liquidity requirements in the Group in order to verify that sufficient cash is available for operating requirements, and while ensuring that the Company does not deviate from the credit facilities and financial covenants in respect of its credit facilities.

The Group’s forecasts take into account several factors, such as financing sources for expected investments and for debt service, which include, inter alia, cash flows from operating activities and from the realization of projects which the Company owns, and raisings of equity and debt which include, inter alia, rights issues, long-term loans and debentures. The Group’s forecasts also take into account the fulfillment of obligatory financial covenants, the fulfillment of certain liquidity ratio targets, and the fulfillment of external requirements such as laws or regulations, when relevant.

The cash surplus which is held by the Group’s entities, which are not required in order to finance the activity as part of working capital, are invested in stable investment channels such as fixed period deposits, and other stable channels. These investment channels are chosen according to the desired repayment period, or according to their liquidity, such that the Group has sufficient cash balances, in accordance with the foregoing forecasts.

Presented below are details regarding the Company’s liabilities and assets segmented by repayment years, except for current items in the statement of financial position, such as trade and other payables, trade and other receivables, which are expected to be repaid according to their carrying values during the coming year:

	As of December 31, 2022()**
																After
	2023			2024			2025			2026			2027			2027			Total
	USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands			USD in thousands
Liability in respect of deferred consideration arrangement		(418	)		(416	)		(396	)		(341	)		(341	)		(2,766	)		(4,678	)
Performance-based contingent consideration (“Earn Out”), see Note 7A(1)		(35,283	)		(17,690	)		-			-			-			-			(52,973	)
Liability in respect of put option		-			-			-			-			-			(27,794	)		(27,794	)
Loans from non-controlling interests		(11,624	)		(10,452	)		(10,547	)		(9,094	)		(6,264	)		(51,671	)		(99,652	)
Debentures^(*)		(23,702	)		(23,139	)		(41,691	)		(90,830	)		(57,269	)		(161,622	)		(398,253	)
Credit and loans from banks and other financial institutions ^(*)		(103,366	)		(129,561	)		(127,133	)		(127,436	)		(149,380	)		(1,164,056	)		(1,800,932	)
Lease liability		(5,846	)		(7,817	)		(7,367	)		(7,234	)		(7,182	)		(68,554	)		(104,000	)

		(180,239	)		(189,075	)		(187,134	)		(234,935	)		(220,436	)		(1,476,463	)		(2,488,282	)

	(*)	The above figures are presented according to their par values on the repayment date, including unaccrued interest, linked to the CPI / exchange rate as of the balance sheet date.
	(**)	The Company has commitments in power purchase agreements which are not reflected in the Company’s statement of financial position.

Fair value

(1)

Details of assets and liabilities which are measured in the statement of financial position at fair value:

For the purpose of measuring the fair value of assets or liabilities, the Group classifies them according to a hierarchy which includes the following three levels:

	-	Level 1: Quoted (unadjusted) prices in active markets for identical properties or identical liabilities as those to which the entity has access on the measurement date.

	-	Level 2: Inputs, except for quoted prices which are included in level 1, which are observable in respect of the asset or liability, directly or indirectly.

	-	Level 3: Unobservable inputs in respect of the asset or liability.

The classification of assets or liabilities which are measured at fair value is based on the lowest level at which significant use was made for the purpose of measuring the fair value of the asset or liability, in their entirety.

Presented below are details regarding the Group’s assets and liabilities which are measured in the Company’s statement of financial position at fair value periodically, in accordance with their measurement levels.

Details regarding fair value measurement at Level 3

		Valuation method for
Financial instrument		determining fair value
Non-marketable shares measured at fair value through profit or loss		Fair value measured using a valuation method that includes the discounted cash flow method

Performance-based (“earn out”) contingent consideration		Fair value measured using the discounted cash flow method

The tables hereunder presents the fair value of the financial instruments that are measured at fair value in accordance to the fair value hierarchy:

As of December 31, 2022:

Level 1

Level 2

Level 3

Total

USD in thousands

Financial Assets at fair value:

Financial assets measured at fair value through profit or loss

33,895

33,895

Contracts in respect of forward transactions

1,493

1,493

Interest rate swaps

89,143

89,143

Non-marketable shares measured at fair value through profit or loss

42,918

42,918

Financial liabilities at fair value:

Transactions to peg electricity prices

swap (CFD differences contract)

(50,255

)

(50,255

)

Performance-based (“earn out”) contingent consideration (“Earn Out”), see Note 7A(1)

(52,972

)

(52,972

)

As of December 31, 2021:

	Level 1		Level 2			Level 3			Total
	USD in thousands		USD in thousands			USD in thousands			USD in thousands
Financial Assets at fair value:
Financial assets measured at fair value through profit or loss		39,364	-			-				39,364

Contracts in respect of forward transactions		-		9,999		-				9,999

Interest rate swaps		-		7,456		-				7,456

Non-marketable shares measured at fair value through profit or loss		-		-			28,682			28,682

Financial liabilities at fair value:
Interest rate swaps		-		(2,627	)		-			(2,627	)

Contracts in respect of forward transactions		-		(8,831	)		-			(8,831	)

Transactions to peg electricity prices swap (CFD differences contract)		-		(31,352	)		-			(31,352	)

Performance-based contingent consideration (“Earn Out”), see Note 7A(1)		-		-			(61,362	)		(61,362	)

The table hereunder presents a reconciliation from the opening balance to the closing balance of financial instruments carried at fair value level 3 of the fair value hierarchy:

	2022			2021
	Financial assets
Non-marketable shares measured at fair value through profit or loss	USD thousands
Balance as at January 1		28,682			10,115
Investment		10,824			18,760
Revaluation (*)		4,868			693
Translation differences		(1,456	)		(886	)
Balance as at December 31		42,918			28,682

	2022			2021
	Financial liabilities
Performance-based (“earn out”) contingent consideration	USD thousands
Balance as at January 1	(61,362		)		-
Initial consolidation see Note 7A(1)	-				(59,131	)
Revaluation		6,678			(2,231	)
Repayment		1,712			-
Balance as at December 31		(52,972	)		(61,362	)

(*)

Under financing income and expenses.

(2)

Fair value of items which are not measured at fair value in the statement of financial position:

Except as specified in the following table, the Company believes that the carrying value of items which are not measured at fair value, including loans from non-controlling interests, is approximately identical to their fair value.

Carrying value

Fair value

As of December 31

Fair value level

2022

2021

2022

2021

USD in thousands

Debentures

Level 1

388,498

408,771

364,203

442,815

Loans from banks and other financial institutions (1)

Level 3

1,200,199

355,808

908,964

411,456

Liability in respect of deferred consideration arrangement (1)

Level 3

2,750

3,123

3,602

5,219

(1)

Fair value is determined according to the present value of future cash flows, discounted by an interest rate which reflects, according to the assessment of management, the change in the credit margin and risk level which occurred during the period.

Other financial assets, Other financial liabilities, Financial assets at fair value through profit or loss and Financial liabilities through profit or loss

	December 31			December 31
	2022			2021
	USD in thousands			USD in thousands
Current assets
Other financial assets
Contracts in respect of forward transactions		1,493			9,999
Non-current assets
Other financial assets
Loans to non-controlling interests		5,253			6,105
Interest rate swaps		89,143			7,456

		95,889			23,560
Current liabilities
Other financial liabilities
Transactions to peg electricity prices swap (CFD differences contract)		(50,255	)		(16,052	)
Contracts in respect of forward transactions		-			(11,550	)
Financial liabilities through profit or loss
Performance-based contingent consideration (“Earn Out”) (1)		(35,282	)		(14,567	)
Non-current liabilities
Other financial liabilities
Transactions to peg electricity prices swap (CFD differences contract)		-			(15,300	)
Financial liabilities through profit or loss
Liability in respect of deferred consideration arrangement (2)		(2,584	)		(2,956	)
Performance-based contingent consideration (“Earn Out”) as well as the founder’s put option (1)		(45,484	)		(74,996	)

		(133,605	)		(135,421	)

	(1)	For additional details, see Note 7A(1).

	(2)	The Company has liabilities in respect of deferred consideration arrangements for initiation services which were provided by some of the towns in Halutziot project. In exchange for the initiation services, those towns are entitled to a percentage of the distributable free cash flows, as defined in the agreement. The balance of the liability in respect of the deferred consideration arrangement including current maturities (see also Note 11), as of December 31, 2022 and 2021, amounted to USD 2,750 thousand and USD 3,007 thousand, respectively.