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Financial Instruments
12 Months Ended
Dec. 31, 2021
FINANCIAL INSTRUMENTS  
Financial Instruments

22.  FINANCIAL INSTRUMENTS

22.1 Financial instruments classified by type and category

a)The detail of financial assets, classified by type and category, as of December 31, 2021 and 2020 is as follows:

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12-31-2021

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Financial assets at fair value with changes in results

Financial assets measured at amortized cost

Financial assets at fair value with changes in other comprehensive income

Financial
derivatives
for hedging

​

ThCh$

ThCh$

ThCh$

ThCh$

Equity instruments

—

—

127,854

—

Trade and other accounts receivable

—

730,524,889

—

—

Derivative instruments

3,613,470

—

14,620,453

3,584,937

Other financial assets

—

118,547

—

—

Total Current

3,613,470

730,643,436

14,748,307

3,584,937

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​

​

​

Equity instruments

—

—

2,358,143

—

Trade and other accounts receivable

—

522,134,341

—

—

Derivative instruments

—

—

—

37,020,922

Total Non-current

—

522,134,341

2,358,143

37,020,922

Total

3,613,470

1,252,777,777

17,106,450

40,605,859

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​

12-31-2020

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Financial assets at fair value with changes in results

Financial assets measured at amortized cost

Financial assets at fair value with changes in other comprehensive income

Financial
derivatives
for hedging

​

ThCh$

ThCh$

ThCh$

ThCh$

Equity instruments

—

—

127,854

—

Trade and other accounts receivable

—

592,856,895

—

—

Derivative instruments

3,033,502

—

18,387,261

1,000,964

Other financial assets

—

808,692

—

—

Total Current

3,033,502

593,665,587

18,515,115

1,000,964

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​

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Equity instruments

—

—

2,326,480

—

Trade and other accounts receivable

—

493,375,481

—

—

Derivative instruments

1,911,233

—

—

16,422,737

Total Non-current

1,911,233

493,375,481

2,326,480

16,422,737

Total

4,944,735

1,087,041,068

20,841,595

17,423,701

The carrying amount of trade accounts receivable and payable approximates their fair value.

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b)The detail of financial liabilities, classified by type and category, as of December 31, 2021 and 2020 is as follows:

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​

12-31-2021

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Financial liabilities at fair value with changes in results

Financial liabilities measured at amortized cost

Financial liabilities at fair value with changes in other comprehensive income

Financial derivatives
for hedging

​

ThCh$

ThCh$

ThCh$

ThCh$

Interest-bearing loans

—

75,182,770

—

—

Trade and other accounts payable

—

1,978,051,397

—

—

Derivative instruments

3,843,088

—

3,396,389

11,647,943

Other financial liabilities

—

11,105,018

—

—

Total Current

3,843,088

2,064,339,185

3,396,389

11,647,943

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​

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Interest-bearing loans

—

1,868,805,671

—

—

Trade and other accounts payable

—

1,479,456,509

—

—

Derivative instruments

682,670

—

—

72,386,037

Other financial liabilities

—

148,557,059

—

—

Total Non-current

682,670

3,496,819,239

—

72,386,037

Total

4,525,758

5,561,158,424

3,396,389

84,033,980

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​

12-31-2020

​

Financial liabilities at fair value with changes in results

Financial liabilities measured at amortized cost

Financial liabilities at fair value with changes in other comprehensive income

Financial derivatives
for hedging

​

ThCh$

ThCh$

ThCh$

ThCh$

Interest-bearing loans

—

152,076,992

—

—

Trade and other accounts payable

—

757,965,390

—

—

Derivative instruments

4,841,020

—

45,543

581,129

Other financial liabilities

—

7,007,711

—

—

Total Current

4,841,020

917,050,093

45,543

581,129

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Interest-bearing loans

—

1,467,421,655

—

—

Trade and other accounts payable

—

1,281,254,521

—

—

Derivative instruments

—

—

—

16,167,471

Other financial liabilities

—

44,857,807

—

—

Total Non-current

—

2,793,533,983

—

16,167,471

Total

4,841,020

3,710,584,076

45,543

16,748,600

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22.2 Derivative instruments

The risk management policy of the Group uses primarily interest rate and foreign exchange rate derivatives to hedge its exposure to interest rate and foreign currency risks.

The Company classifies its hedges as follows:

-Cash flow hedges: Those that hedge the cash flows of the underlying hedged item.
-Fair value hedges: Those that hedge the fair value of the underlying hedged item.
-Non-hedge derivatives: Financial derivatives that do not meet the requirements established by IFRS to be designated as hedging instruments are recognized at fair value through profit or loss (financial assets held for trading).

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a)Assets and liabilities for hedge derivative instruments

As of December 31, 2021 and 2020, financial derivative qualifying as hedging instruments resulted in recognition of the following assets and liabilities in the statement of financial position:

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12-31-2021

12-31-2020

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Assets

Liabilities

Assets

Liabilities

​

Current

Non-current

Current

Non-current

Current

Non-current

Current

Non-current

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ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

—

432,151

6,532,657

—

—

—

1,947,377

12,944,130

Cash flow hedge

—

432,151

6,532,657

—

—

—

1,947,377

12,944,130

Exchange rate hedge:

3,584,937

36,588,771

5,115,286

72,386,037

1,000,964

16,422,737

3,451,487

3,223,341

Cash flow hedge

3,584,937

36,588,771

5,115,286

72,386,037

1,000,964

16,422,737

3,451,487

3,223,341

Total

3,584,937

37,020,922

11,647,943

72,386,037

1,000,964

16,422,737

5,398,864

16,167,471

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-General information Related to Hedging Derivative Instruments

Hedging derivative instruments and their corresponding hedged instruments are shown in the following table:

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Fair value of

Fair value of

​

Type of

Description

Description

hedged item

hedged item

Type

hedge

 of hedged

 of hedged

12-31-2021

12-31-2020

of

 instrument

risk

item

ThCh$

ThCh$

risk hedged

SWAP

Exchange rate

Unsecured Obligations (Bonds)

(37,402,976)

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Cash flow

SWAP

Interest rate

Loans with Related Companies

(6,100,507)

(12,944,129)

Cash flow

SWAP

Interest rate

Bank loans

—

(1,947,377)

Cash flow

FORWARD

Exchange rate

Operational Income

(4,285,349)

(1,967,328)

Cash flow

FORWARD

Interest rate

Other

—

(77,558)

Cash flow

FORWARD

Exchange rate

Property, plant & equipment investment

3,278,444

—

Cash flow

FORWARD

Exchange rate

Other

1,082,267

29,981

Cash flow

As of December 31, 2021 and 2020, the Group has not recognized significant gains or losses for ineffective cash flow hedges.

At the reporting date, the Group did not establish fair value hedging relationships.

b)Financial derivative instruments assets and liabilities at fair value through profit or loss

As of December 31, 2021 and 2020, financial derivative transactions recognized at fair value through profit or loss resulted in the recognition of the following liabilities in the statement of financial position:

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12-31-2021

12-31-2020

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Current
Assets

Current

Liabilities

Non-Current
Assets

Non-Current

Liabilities

Current
Assets

Current

Liabilities

Non-Current
Assets

Non-Current

Liabilities

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ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Non-hedging derivative instrument

210,077

1,509,177

—

682,670

1,414,895

23,285

1,911,233

—

Total

210,077

1,509,177

—

682,670

1,414,895

23,285

1,911,233

—

These derivative instruments correspond to forward contracts entered into by the Group, the purpose of which is to hedge the exchange rate risk related to future obligations arising from civil works contracts linked to the construction of the Los Cóndores Plant. Although these hedges have an economic substance, they do not qualify for hedge accounting because they do not strictly comply with the hedge accounting requirements established in IFRS 9 Financial Instruments.

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c)Other information on derivatives:

The following table sets forth the fair value of hedging and non-hedging derivatives entered into by the Group as well as the remaining contractual maturities as of December 31, 2021 and 2020.

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12-31-2021

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Notional Amount

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Fair value

Less than 1 year

1-2 years

2-3 years

3-4 years

4-5 years

Total

Financial derivatives

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

(6,100,506)

337,876,000

—

42,234,500

—

—

380,110,500

Cash flow hedge

(6,100,506)

337,876,000

—

42,234,500

—

—

380,110,500

Exchange rate hedge:

(37,327,615)

264,384,743

110,432,048

344,081,268

53,306,308

—

772,204,367

Cash flow hedge

(37,327,615)

264,384,743

110,432,048

344,081,268

53,306,308

—

772,204,367

Derivatives not designated for hedge accounting

(1,981,770)

26,610,132

10,387,480

339,050

—

—

37,336,662

Total

(45,409,891)

628,870,875

120,819,528

386,654,818

53,306,308

—

1,189,651,529

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​

12-31-2020

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Notional Amount

​

Fair value

Less than 1 year

1-2 years

2-3 years

3-4 years

4-5 years

Total

Financial derivatives

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

(14,891,507)

106,642,500

284,380,000

—

—

—

391,022,500

Cash flow hedge

(14,891,507)

106,642,500

284,380,000

—

—

—

391,022,500

Exchange rate hedge:

10,748,873

143,449,971

3,390

—

504,391,045

95,129,590

742,973,996

Cash flow hedge

10,748,873

143,449,971

3,390

—

504,391,045

95,129,590

742,973,996

Derivatives not designated for hedge accounting

3,302,843

30,063,763

21,189,518

8,742,828

285,368

—

60,281,477

Total

(839,791)

280,156,234

305,572,908

8,742,828

504,676,413

95,129,590

1,194,277,973

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The notional amount of the contracts entered into does not represent the risk assumed by the Group, as this amount only relates to the basis on which the derivative settlement calculations are made.

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22.3 Fair value hierarchies

Financial instruments recognized at fair value in the consolidated statement of financial position are classified based on the hierarchies described in Note 3.h.

The following table presents financial assets and liabilities measured at fair value as of December 31, 2021 and 2020:

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Fair Value Measured at End of Reporting Period Using:

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12-31-2021

Level 1

Level 2

Level 3

Financial Instruments Measured at Fair Value

ThCh$

ThCh$

ThCh$

ThCh$

Financial Assets:

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​

​

Financial derivatives designated as cash flow hedges

40,605,859

—

40,605,859

—

Financial derivatives not designated for hedge accounting

210,077

—

210,077

—

Derivatives of commodities designated as non-hedging of cash flow at fair value through profit or loss

3,403,393

—

3,403,393

—

Derivatives of commodities designated as cash flow hedges at fair value with changes in other comprehensive income

14,620,453

—

14,620,453

—

Equity instruments at fair value with changes in other comprehensive income

2,485,997

2,358,143

127,854

—

Total

61,325,779

2,358,143

58,967,636

—

Financial Liabilities:

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​

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Financial derivatives designated as cash flow hedges

84,033,980

—

84,033,980

—

Financial derivatives not designated for hedge accounting

2,191,847

—

2,191,847

—

Derivatives of commodities designated as cash flow hedges at fair value with changes in profit or loss

2,333,911

—

2,333,911

—

Derivatives of commodities designated as cash flow hedges at fair value with changes in other comprehensive income

3,396,389

—

3,396,389

—

Total

91,956,127

—

91,956,127

—

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Fair Value Measured at End of Reporting Period Using:

​

12-31-2020

Level 1

Level 2

Level 3

Financial Instruments Measured at Fair Value

ThCh$

ThCh$

ThCh$

ThCh$

Financial Assets:

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​

​

Financial derivatives designated as cash flow hedges

17,423,701

—

17,423,701

—

Financial derivatives not designated for hedge accounting

3,326,128

—

3,326,128

—

Derivatives of commodities designated as non-hedging of cash flow at fair value through profit or loss

1,618,607

—

1,618,607

—

Derivatives of commodities designated as cash flow hedges at fair value with changes in other comprehensive income

18,387,261

—

18,387,261

—

Equity instruments at fair value with changes in other comprehensive income

2,454,334

2,326,480

127,854

—

Total

43,210,031

2,326,480

40,883,551

—

Financial Liabilities:

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​

​

Financial derivatives designated as cash flow hedges

21,566,335

—

21,566,335

—

Financial derivatives not designated for hedge accounting

23,285

—

23,285

—

Derivatives of commodities designated as cash flow hedges at fair value with changes in other comprehensive income

45,543

—

45,543

—

Total

21,635,163

—

21,635,163

—

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