Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Disclosure of detailed information about financial instruments [abstract]

Schedule of Composition of Derivatives

	June 30,			December 31,
	2020			2019
	€ in thousands
	Unaudited			Audited
Derivatives presented under current assets
Currency swap		43			94
Derivatives presented under non-current assets
Financial power swap		-			4,967
Currency swap		209			103
Forward contracts		-			92
		209			5,162
Derivatives presented under current liabilities
Swap contracts		(1,025	)		(766	)
Derivatives presented under non-current liabilities
Forward contracts		-			(344	)
Financial power swap		(5,432	)		-
Swap contracts		(8,720	)		(6,919	)
		(14,152	)		(7,263	)

Schedule of Statement of Fair value of Other Financial Assets and Liabilities

The fair values of the other financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

	June 30, 2020
			Fair value
	Carrying								Valuation techniques for	Inputs used to
	amount		Level 1		Level 2		Level 3		determining fair value	determine fair value
	€ in thousands
Non-current liabilities:
Debentures		44,679		43,542		-		-
Loans from banks and others (including current maturities)		164,692		-		165,104		-	Future cash flows by the market interest rate on the date of measurement.	Discount rate of Euribor+ 2.53%, fix rate for 5 years 2.9%-3.1%, annual interest of Euribor with a margin (expected to be 1.76%), annual interest of 6 month Euribor with margin of 2%- 2.75% and 4.65% Linkage to Consumer Price Index in Israel.
		209,371		43,542		165,104		-

	December 31, 2019
			Fair value
	Carrying								Valuation techniques for	Inputs used to
	amount		Level 1		Level 2		Level 3		determining fair value	determine fair value
	€ in thousands
Non-current liabilities:
Debentures		71,584		73,211		-		-
Loans from banks and others (including current maturities)		93,320		-		94,677		-	Discounting future cash flows by the market interest rate on the date of measurement.	Discount rate of Euribor+ 2.53%, fix rate for 5 years 2.9%-3.1% and 4.65% Linkage to Consumer price index in Israel.
		164,904		73,211		94,677		-

Schedule of Fair Values Hierarchy

	June 30, 2020
	Level 1		Level 2			Level 3			Total			Valuation techniques for
	€ in thousands											determining fair value
Marketable securities		-		2,226			-			2,226		Market price
Swap contracts		-		(9,745	)		-			(9,745	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap		-		252			-			252		Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan		-		-			8,678			8,678		The fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 6.4% and the expected yearly change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap		-		-			(5,432	)		(5,432	)	Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

There have been no transfers from any Level to another Level during the six months ended June 30, 2020.

	December 31, 2019
	Level 1		Level 2			Level 3		Total			Valuation techniques for
	€ in thousands										determining fair value
Income receivable in connection with the A.R.Z. electricity pumped storage project		-		-			1,418		1,418		The fair value of the income receivable in connection with the A.R.Z. electricity pumped storage project was calculated according to the cash flows expected to be received in 4.5 years following the financial closing of the project, discounted at a weighted interest rate of 2.36% reflecting the credit risk of the debtor.
Marketable securities		-		2,242			-		2,242		Market price
Forward contracts		-		(252	)		-		(252	)	Fair value measured on the basis of discounting the difference between the forward price in the contract and the current forward price for the residual period until redemption using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Swap contracts		-		(7,685	)		-		(7,685	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap		-		197			-		197		Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan		-		-			10,595		10,595		The fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 10% and the expected yearly change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap		-		-			4,967		4,967		Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

Schedule of Reconciliation Financial Instruments Carried at Fair Value

The table hereunder presents a reconciliation from the beginning balance to the ending balance of financial instruments carried at fair value in level 3 of the fair value hierarchy:

	Financial assets
	Income receivable in connection with the A.R.Z. electricity
	pumped storage project
	€ in thousands
Balance as at December 31, 2019		1,418
Compensation as per agreement with Erez Electricity Ltd.		(1,418	)
Balance as at June 30, 2020		-

	Financial assets
	Dori Energy loan
	€ in thousands
Balance as at December 31, 2019		10,595
Repayment of loan to an equity accounted investee		(2,505	)
Total income recognized in profit or loss		386
Interest		294
Foreign Currency translation adjustments		(92	)
Balance as at June 30, 2020		8,678

	Financial assets
	Financial power swap
	€ in thousands
Balance as at December 31, 2019		4,967
Total loss is recognized in other comprehensive income		(10,399	)
Balance as at June 30, 2020		(5,432	)