The “Derivatives designated as hedges: assets and liabilities” item breaks down as follows:
| (in € millions) | 2023 | 2022 |
|---|---|---|
| Net interest on derivatives designated as fair value hedges | Net interest on derivatives designated as fair value hedges 2023(361) |
Net interest on derivatives designated as fair value hedges 2022133 |
| Change in value of interest rate derivatives designated as fair value hedges | Change in value of interest rate derivatives designated as fair value hedges 2023767 |
Change in value of interest rate derivatives designated as fair value hedges 2022(2,320) |
| Change in value of the adjustment to fair value hedged financial debt | Change in value of the adjustment to fair value hedged financial debt 2023(757) |
Change in value of the adjustment to fair value hedged financial debt 20222,313 |
| Ineffective portion of foreign currency fair value hedges | Ineffective portion of foreign currency fair value hedges 2023- |
Ineffective portion of foreign currency fair value hedges 2022(1) |
| Reserve recycled through profit or loss in respect of cash flow and net investment hedges | Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2023174 |
Reserve recycled through profit or loss in respect of cash flow and net investment hedges 2022(76) |
| Ineffective portion of cash flow and net investment hedges | Ineffective portion of cash flow and net investment hedges 2023(4) |
Ineffective portion of cash flow and net investment hedges 20227 |
| Gains and losses on derivative instruments allocated to net financial debt | Gains and losses on derivative instruments allocated to net financial debt2023(181) | Gains and losses on derivative instruments allocated to net financial debt202257 |
Other financial income and expense comprises mainly discounting effects, the impact of capitalised borrowing costs, foreign exchange gains and losses relating to financial items and changes in the value of equity instruments and derivatives not allocated to hedging interest rate or exchange rate risk, along with financial expense relating to lease liabilities under IFRS 16.
Capitalised borrowing costs relate to infrastructure under concession and are included during the construction period in the value of those assets. They are determined as follows:
Other financial income and expense breaks down as follows:
| (in € millions) | 2023 | 2022 |
|---|---|---|
| Effect of discounting to present value | Effect of discounting to present value 2023(88) |
Effect of discounting to present value 202256 |
| Capitalised borrowing costs | Capitalised borrowing costs 2023118 |
Capitalised borrowing costs 202229 |
| Financial expenses on lease liabilities | Financial expenses on lease liabilities 2023(67) |
Financial expenses on lease liabilities 2022(48) |
| Foreign exchange gains and losses, other changes in fair value and miscellaneous items | Foreign exchange gains and losses, other changes in fair value and miscellaneous items 2023(119) |
Foreign exchange gains and losses, other changes in fair value and miscellaneous items 2022243 |
| Total other financial income and expense | Total other financial income and expense2023(157) | Total other financial income and expense2022279 |
In 2023, discounting effects produced an expense of €88 million, compared with income of €56 million in 2022. The difference resulted mainly from the discounting effect arising from provisions for the obligation to maintain the condition of concession intangible assets, which represented an expense of €48 million (income of €72 million in 2022), including a €30 million expense at VINCI Autoroutes (income of €63 million in 2022).
The net financial expense arising from the discounting of provisions for retirement benefit obligations increased by €16 million to €30 million. Effects arising from the discounting of provisions for fixed fees payable to concession grantors in relation to Belgrade airport in Serbia amounted to €10 million.
Capitalised borrowing costs amounted to €118 million in 2023, rising in particular as a result of the transition to full consolidation of Vía Sumapaz (formerly known as Vía 40 Express) in Colombia (impact of €65 million). They also related to VINCI Autoroutes, Belgrade airport and London Gatwick airport.
There was a foreign exchange gain of €38 million in 2023 (€25 million in 2022). Other changes in fair value include the decrease in the fair value of the stake in Groupe ADP (negative impact of €63 million) and interest expense relating to the longterm advances received from the offtaker in respect of the Carmópolis project in Brazil at Cobra IS (negative impact of €88 million). In 2022, they mainly included the increase in the fair value of the stake in Groupe ADP (positive impact of €94 million) and the gain arising from the early redemption of bonds by London Gatwick airport (positive impact of €131 million).
