Project debt

9 Months Ended

Sep. 30, 2022

Note 15. - Project debt

This note shows the project debt linked to the contracted concessional assets included in Note 6 of these Consolidated Condensed Interim Financial Statements.

Project debt is generally used to finance contracted assets, exclusively using as guarantee the assets and cash flows of the company or group of companies carrying out the activities financed. In addition, the cash of the Company´s projects include funds held to satisfy the customary requirements of certain non-recourse debt agreements and other restricted cash for an amount of $231 million as of September 30, 2022 ($254 million as of December 31, 2021).

The breakdown of project debt for both non-current and current liabilities as of September 30, 2022 and December 31, 2021 is as follows:

	Balance as of September 30,		Balance as of December 31,
	2022		2021
	($ in thousands)
Non-current		4,249,902		4,387,674
Current		372,038		648,519
Total Project debt		4,621,940		5,036,193

The decrease in total project debt is primarily due to:

-	the repayment of project debt for the period in accordance with the financing arrangements; and

-	the lower value of debt denominated in Euros given the depreciation of the Euro against the U.S. dollar since December 31, 2021.

As of December 31, 2021, Kaxu total debt was presented as current in the Consolidated Condensed Interim Financial Statements of the Company, for an amount of $314 million, in accordance with International Accounting Standards 1 (“IAS 1”), “Presentation of Financial Statements”, as a result of the existence of a theoretical event of default under the Kaxu project finance agreement. Since March 31, 2022, the Company has again an unconditional right to defer the settlement of the debt for at least twelve months, and therefore the debt previously presented as current in these Consolidated Condensed Interim Financial Statements has been reclassified as non-current in accordance with the financing agreements (Note 1).

The repayment schedule for project debt in accordance with the financing arrangements as of September 30, 2022, is as follows and is consistent with the projected cash flows of the related projects:

Remainder of 2022
Interest payment		Nominal repayment		Between January and September 2023		Between October and December 2023		2024		2025		2026		Subsequent years		Total
($ in thousands)
	52,074		170,195		149,769		174,980		341,020		453,890		381,112		2,898,900		4,621,940

The repayment schedule for project debt in accordance with the financing arrangements and assuming there would be no acceleration of the Kaxu debt repayment as of December 31, 2021, was as follows and was consistent with the projected cash flows of the related projects:

2022				2023		2024		2025		2026		Subsequent years		Total
Interest payment		Nominal repayment
	18,017		317,388		355,956		369,528		498,712		411,514		3,065,078		5,036,193