Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure of detailed information about financial instruments [abstract]

Disclosure of detailed information about the evaluation of derivative financial instruments, mostly forward transactions and currency options

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.

Disclosure of sensitivity analysis of changes in foreign currency exchange rates

	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

Disclosure of sensitivity analysis of change in 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	)

Disclosure of 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	)

Disclosure of detailed information about carrying values of financial instruments which are exposed to cash flow risks in respect of interest rate changes

	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.

Disclosure of interest rate swap contracts which were designated as hedging instruments

	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

Disclosure of maturity analysis for financial assets held for managing liquidity risk

	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.

Disclosure of detailed information about the fair value of financial assets and financial liabilities

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	)

Disclosure of 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.

Disclosure of detailed information about the financial assets and financial liabilities not measured at fair value in statement of financial position

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

Disclosure of detailed information about the other financial liabilities

	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.