Project debt

3 Months Ended

Mar. 31, 2024

Note 16. - Project debt

This note shows the project debt linked to the 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 $185 million as of March 31, 2024 ($177 million as of December 31, 2023).

The breakdown of project debt for both non-current and current liabilities as of March 31, 2024, and December 31, 2023, is as follows:

	Balance as of March 31,		Balance as of December 31,
	2024		2023
	($ in thousands)
Non-current		3,876,671		3,931,873
Current		424,457		387,387
Total Project debt		4,301,128		4,319,260

The Company refinanced the Solaben 2&3 assets in March 2023, entering into two green senior euro-denominated loan agreements for the two assets with a syndicate of banks for a total amount of €198.0 million. The new project debt replaced the previous project loans for a similar amount and maturity was extended from December 2030 to June 2037.

Chile PV 1 and Chile PV 2, where the Company owns a 35% equity interest, were not able to maintain the minimum required cash in its debt service reserve account during the year 2023 and during the first quarter of 2024 due to low electricity prices, which represents an event of default as of December 31, 2023 and March 31, 2024. As a result, although the Companies do not expect an acceleration of the debts to be declared by the credit entities, Chile PV 1 and Chile PV 2 did not have a right to defer the settlement of the debt for at least twelve months and the project debts, which amount to $71 million as of December 31, 2023 and March 31, 2024, were classified as current in these Consolidated Condensed Interim Financial Statements in accordance with International Accounting Standards 1 (“IAS 1”), “Presentation of Financial Statements”.

The repayment schedule for project debt in accordance with the financing arrangements as of March 31, 2024, is as follows and is consistent with the projected cash flows of the related projects:

Remainder of 2024
Interest payment		Nominal repayment		Between January and March 2025		Between April and December 2025		2026		2027		2028		Subsequent years		Total
($ in thousands)
	53,218		281,403		24,057		296,592		348,409		496,184		458,392		2,342,873		4,301,128

The repayment schedule for project debt in accordance with the financing arrangements as of December 31, 2023, was as follows and was consistent with the projected cash flows of the related projects:

2024				2025		2026		2027		2028		Subsequent years		Total
Interest payment		Nominal repayment
	15,215		305,087		325,303		352,495		499,968		464,648		2,356,544		4,319,260