Financial expense, net

3 Months Ended

Mar. 31, 2024

Note 20. - Financial expense, net

The following table sets forth financial income and expenses for the three-month periods ended March 31, 2024 and 2023:

	For the three-month period ended March 31,
	2024		2023
Financial income	($ in thousands)
Interest income on deposits and current accounts		4,883		3,791
Interest income from loans and credits		964		353
Interest rates gains on derivatives: cash flow hedges		114		40
Total		5,961		4,184

	For the three-month period ended March 31,
	2024			2023
Financial expense	($ in thousands)
Interest on loans and notes		(87,011	)		(83,288	)
Interest rates gains on derivatives: cash flow hedges		5,957			6,028
Total		(81,054	)		(77,260	)

Interest expense on loans and notes primarily include interest on corporate and project debt.

Gains from interest rate derivatives designated as cash flow hedges primarily correspond to transfers from equity to financial income when the hedged item impacts the consolidated profit or loss statement.

Net exchange differences

Net exchange differences primarily correspond to realized and unrealized exchange gains and losses on transactions in foreign currencies as part of the normal course of business of the Company.

Other financial expense, net

The following table sets out Other financial income and expenses for the three-month periods ended March 31, 2024, and 2023:

	For the three-month period ended March 31,
	2024			2023
	($ in thousands)
Other financial income		1,640			428
Other financial losses		(6,265	)		(9,491	)
Total		(4,625	)		(9,063	)

Other financial income in the three-month period ended March 31, 2024 include an income for non-monetary change to the fair value of derivatives of Kaxu for which hedge accounting is not applied for $0.6 million and $0.7 million of income further to the change in the fair value of the conversion option of the Green Exchangeable Notes (Note 15).

Other financial losses primarily include guarantees and letters of credit, other bank fees and non-monetary interest expenses for updating the present value of provisions and other long-term liabilities reflecting passage of time. Additionally, in the three-month period ended March 31, 2023, other financial losses included an expense for non-monetary change to the fair value of derivatives of Kaxu for which hedge accounting is not applied for $0.2 million, and $3.0 million of expense further to the change in the fair value of the conversion option of the Green Exchangeable Notes in the period (Note 15).