Derivative financial instruments

12 Months Ended

Dec. 31, 2023

Derivative financial instruments [Abstract]

Note 10.- Derivative financial instruments

The breakdowns of the fair value amount of the derivative financial instruments as of December 31, 2023 and 2022 are as follows:

	Balance as of December 31, 2023				Balance as of December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Interest rate cash flow hedge		60,102		29,163		94,192		12,159
Foreign exchange derivatives instruments		1,595		-		3,189		-
Notes conversion option (Note 15)		-		794		-		4,688
Total		61,697		29,957		97,381		16,847

The derivatives are primarily interest rate cash-flow hedges. Almost all of them are classified as non-current assets or non-current liabilities, as they hedge long-term financing agreements.

As stated in Note 3 to these Consolidated Financial Statements, the general policy is to hedge variable interest rates of financing agreements using two types of hedging derivatives:

-	Interest rate swaps under which the Company receives the floating leg and pays the fixed leg; and

-	Purchased call options (cap), in exchange of a premium to fix the maximum interest rate cost.

The notional amounts hedged, strikes contracted and maturities, depending on the characteristics of the debt on which the interest rate risk is being hedged, can be diverse. As of December 31, 2023, approximately 92% of the Project debt and 94% of the Corporate debt of the Company either has fixed interest rates or has been hedged with swaps or caps (92% and 96%, respectively, as of December 31, 2022).

The table below shows a breakdown of the maturities of notional amounts of interest rate cash flow hedge derivatives as of December 31, 2023 and 2022.

Notionals	Balance as of December 31, 2023				Balance as of December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Up to 1 year		248,898		43,013		245,147		47,029
Between 1 and 2 years		279,215		95,701		310,393		102,476
Between 2 and 3 years		314,644		104,848		217,498		112,855
Subsequent years		523,564		264,563		659,186		280,016
Total		1,366,321		508,125		1,432,224		542,376

The table below shows a breakdown of the maturity of the fair values of interest rate cash flow hedge derivatives as of December 31, 2023 and 2022:

Fair value	Balance as of December 31, 2023					Balance as of December 31, 2022
	Assets		Liabilities			Assets		Liabilities
Up to 1 year		3,957		(1,740	)		10,868		(991	)
Between 1 and 2 years		10,124		(5,347	)		17,860		(2,189	)
Between 2 and 3 years		12,070		(5,848	)		12,257		(2,851	)
Subsequent years		33,951		(16,228	)		53,207		(6,128	)
Total		60,102		(29,163	)		94,192		(12,159	)

The net amount of the fair value of interest rate derivatives designated as cash flow hedges transferred to the consolidated profit and loss statement in 2023 is a profit of $27.1 million (loss of $38.2 million in 2022 and a loss of $58.3 million in 2021).

The after-tax result accumulated in equity in connection with derivatives designated as cash flow hedges at the years ended December 31, 2023 and 2022, amounts to a $308.0 million gain and a $345.6 million gain, respectively.

Additionally, the Company has currency options with leading international financial institutions, which guarantee minimum Euro-U.S. dollar exchange rates. The strategy of the Company is to hedge the exchange rate for the net distributions from its European assets after deducting euro-denominated interest payments and euro-denominated general and administrative expenses. Through currency options, the strategy of the Company is to hedge 100% of its euro-denominated net exposure for the next 12 months and 75% of its euro denominated net exposure for the following 12 months, on a rolling basis. Change in fair value of these foreign exchange derivatives instruments are directly recorded in the consolidated profit and loss statement.

Finally, the conversion option of the Green Exchangeable Notes issued in July 2020 (Note 15) is recorded as a derivative with a fair value (liability) of $0.8 million as of December 31, 2023 ($4.7 million as of December 31, 2022).