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Financial Instruments
12 Months Ended
Dec. 31, 2024
FINANCIAL INSTRUMENTS  
Financial Instruments

23.  FINANCIAL INSTRUMENTS

22.1 Financial instruments classified by type and category

a)The details of financial assets, classified by type and category, as of December 31, 2024 and 2023 are as follows:

12-31-2024

    

Financial assets at fair value through profit or loss

Financial assets measured at amortized cost

Financial assets at fair value through other comprehensive income

Financial derivatives for hedging

ThCh$

ThCh$

ThCh$

ThCh$

Equity instruments

127,854

Trade and other receivables

1,530,797,366

Derivative instruments

1,196

1,950,008

8,582,940

Other financial assets

10,807,718

Total Current

1,196

1,541,605,084

2,077,862

8,582,940

Equity instruments

2,326,422

Trade and other receivables

1,159,251,669

Derivative instruments

Other financial assets

2,319,881

Total Non-current

2,319,881

1,159,251,669

2,326,422

Total

2,321,077

2,700,856,753

4,404,284

8,582,940

12-31-2023

    

Financial assets at fair value through profit or loss

    

Financial assets measured at amortized cost

    

Financial assets at fair value through other comprehensive income

    

Financial derivatives for hedging

ThCh$

ThCh$

ThCh$

ThCh$

Equity instruments

127,854

Trade and other receivables

1,496,875,382

Derivative instruments

46,128

2,693,292

58,009,661

Other financial assets

9,552,991

Total Current

46,128

1,506,428,373

2,821,146

58,009,661

Equity instruments

2,326,466

Trade and other receivables

903,678,141

Derivative instruments

9,275,919

Total Non-current

903,678,141

2,326,466

9,275,919

Total

46,128

2,410,106,514

5,147,612

67,285,580

b)The details of financial liabilities, classified by type and category, as of December 31, 2024 and 2023 are as follows:

12-31-2024

    

Financial liabilities at fair value through profit or loss

Financial liabilities measured at amortized cost

Financial liabilities at fair value through other comprehensive income

Financial derivatives for hedging

ThCh$

ThCh$

ThCh$

Interest-bearing loans

61,229,866

Trade and other payables

1,828,004,718

Derivative instruments

16,616

729,271

22,461,567

Other financial liabilities

26,886,119

Total Current

16,616

1,916,120,703

729,271

22,461,567

Interest-bearing loans

2,368,746,913

Trade and other payables

1,981,976,990

Derivative instruments

5,215,190

Other financial liabilities

267,718,931

Total Non-current

4,618,442,834

5,215,190

Total

16,616

6,534,563,537

729,271

27,676,757

12-31-2023

Financial liabilities at fair value through profit or loss

Financial liabilities measured at amortized cost

Financial liabilities at fair value through other comprehensive income

Financial derivatives for hedging

ThCh$

ThCh$

ThCh$

ThCh$

Interest-bearing loans

542,220,313

Trade and other payables

1,911,613,832

Derivative instruments

640

15,456,599

72,793,962

Other financial liabilities

24,138,193

Total Current

640

2,477,972,338

15,456,599

72,793,962

Interest-bearing loans

1,897,563,167

Trade and other payables

1,630,326,076

Derivative instruments

6,949,774

Other financial liabilities

243,924,027

Total Non-current

3,771,813,270

6,949,774

Total

640

6,249,785,608

15,456,599

79,743,736

The carrying value of trade receivables and payables approximates their fair value.

23.2 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).
a)Assets and liabilities for hedge derivative instruments

As of December 31, 2024 and 2023, financial derivative qualifying as hedging instruments resulted in recognition of the following assets and liabilities in the statement of financial position:

12-31-2024

12-31-2023

Assets

Liabilities

Assets

Liabilities

    

Current

    

Non-current

    

Current

    

Non-current

    

Current

    

Non-current

    

Current

    

Non-current

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

74,283

3,118,600

1,075,171

Cash flow hedge

74,283

3,118,600

1,075,171

Exchange rate hedge:

8,508,657

22,461,567

2,096,590

56,934,490

9,275,919

72,793,962

6,949,774

Cash flow hedge (i)

8,508,657

22,461,567

2,096,590

56,934,490

9,275,919

72,793,962

6,949,774

TOTAL

8,582,940

22,461,567

5,215,190

58,009,661

9,275,919

72,793,962

6,949,774

Additionally, the details of the associated instruments and underlying assets are presented in a complementary manner:

12-31-2024

12-31-2023

Assets

Liabilities

Assets

Liabilities

Description of Instruments covered

Current

Non-current

Current

Non-current

Current

Non-current

Current

Non-current

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Finance debt

8,582,940

-

7,627,420

5,215,190

46,969,512

8,252,744

37,011,496

5,004,408

Investments in property, plant & equipment

-

-

278,000

-

715,556

229,145

597,382

-

Operating income (i)

-

-

14,556,147

-

9,228,335

794,030

34,222,093

1,945,366

Other

-

-

-

-

1,096,258

-

962,991

-

TOTAL

8,582,940

-

22,461,567

5,215,190

58,009,661

9,275,919

72,793,962

6,949,774

(i) Considering the anticipated change in functional currency for Enel Generación Chile, the accounting hedges associated with a portion of the revenues of this subsidiary, which are directly linked to the evaluation of the US dollar, lose their effectiveness. Therefore, due to the change in risk management objectives, they were prospectively discontinued. At the end of the 2024 fiscal year, the accumulated amount in the cash flow hedge reserves, where financial derivatives were defined as the hedging instrument, amounted to ThCh$98,638,969, before taxes and minority interests. This amount was fully recognized as lower revenues for 2024 (see Notes 20.3, 28.1, and 41.i).

-General information Related to Hedging Derivative Instruments

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

Fair value of

Fair value of

Type of

Description

Description

Type

hedged item

hedged item

hedge

 of hedged

 of hedged

of

12-31-2024

12-31-2023

 instrument

    

risk

    

item

    

risk hedged

ThCh$

    

ThCh$

SWAP

Exchange rate

Unsecured obligations (bonds)

Cash flow

(1,215,353)

12,131,181

SWAP

Interest rate

Loans with related parties

Cash flow

(3,044,317)

1,075,171

FORWARD

Exchange rate

Operating income

Cash flow

(14,556,147)

(26,145,093)

FORWARD

Exchange rate

Investments in property, plant & equipment

Cash flow

(278,000)

347,318

FORWARD

Interest rate

Other

Cash flow

133,267

As of December 31, 2024 and 2023, 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, 2024 and 2023, liabilities were recognized in the statement of financial position as a result of financial derivative transactions that are recorded at fair value through profit or loss. The amounts are detailed as follows:

12-31-2024

12-31-2023

    

Current
Assets

    

Current
Liabilities

    

Non-Current
Assets

    

Non-Current
Liabilities

    

Current
Assets

    

Current
Liabilities

    

Non-Current
Assets

    

Non-Current
Liabilities

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Non-hedging derivative instrument

14,145

46,128

640

Total

14,145

46,128

640

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.

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, 2024 and 2023:

12-31-2024

Notional Amount

    

Fair value

    

Less than 1 year

    

1-2 years

    

2-3 years

    

3-4 years

    

4-5 years

More than 5 years

    

Total

Financial derivatives

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

(3,044,317)

284,987,560

284,987,560

 Cash flow hedge

(3,044,317)

284,987,560

284,987,560

Exchange rate hedge:

(16,049,500)

227,318,765

177,585,979

404,904,743

 Cash flow hedge

(16,049,500)

227,318,765

177,585,979

404,904,743

Derivatives not designated for hedge accounting

(14,145)

2,227,579

2,227,579

TOTAL

(19,107,962)

229,546,344

177,585,979

284,987,560

692,119,882

12-31-2023

Notional Amount

    

Fair value

    

Less than 1 year

    

1-2 years

    

2-3 years

    

3-4 years

    

4-5 years

More than 5 years

    

Total

Financial derivatives

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Interest rate hedge:

1,075,171

43,856,000

43,856,000

 Cash flow hedge

1,075,171

43,856,000

43,856,000

Exchange rate hedge:

(13,533,327)

1,490,311,984

188,944,903

1,679,256,887

 Cash flow hedge

(13,533,327)

1,490,311,984

188,944,903

1,679,256,887

Derivatives not designated for hedge accounting

45,488

3,707,241

3,707,241

TOTAL

(12,412,668)

1,537,875,225

188,944,903

1,726,820,128

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.  

23.3 Fair value hierarchy

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, 2024 and 2023:

Fair Value Measured at End of Reporting Period Using:

    

12-31-2024

    

Level 1

    

Level 2

    

Level 3

Financial Instruments Measured at Fair Value

ThCh$

ThCh$

ThCh$

ThCh$

Financial Assets:

Financial derivatives designated as cash flow hedges

8,582,940

8,582,940

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

1,196

1,196

Derivatives of commodities designated as cash flow hedges at fair value through other comprehensive income

1,950,008

1,950,008

Equity instruments at fair value through other comprehensive income

2,454,276

2,326,422

127,854

Total

12,988,420

2,326,422

10,661,998

Financial Liabilities:

Financial derivatives designated as cash flow hedges

27,676,757

27,676,757

Financial derivatives not designated for hedge accounting

14,145

14,145

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

2,471

2,471

Derivatives of commodities designated as cash flow hedges at fair value through other comprehensive income

729,271

729,271

Total

28,422,644

28,422,644

Fair Value Measured at End of Reporting Period Using:

    

12-31-2023

    

Level 1

    

Level 2

    

Level 3

Financial Instruments Measured at Fair Value

ThCh$

ThCh$

ThCh$

ThCh$

Financial Assets:

Financial derivatives designated as cash flow hedges

67,285,580

67,285,580

Financial derivatives not designated for hedge accounting

46,128

46,128

Derivatives of commodities designated as cash flow hedges at fair value through other comprehensive income

2,693,291

2,693,291

Equity instruments at fair value through other comprehensive income

2,454,320

2,326,466

127,854

Total

72,479,319

2,326,466

70,152,853

Financial Liabilities:

Financial derivatives designated as cash flow hedges

79,743,736

79,743,736

Financial derivatives not designated for hedge accounting

640

640

Derivatives of commodities designated as cash flow hedges at fair value through other comprehensive income

15,456,599

15,456,599

Total

95,200,975

95,200,975