Humberto Nadal: No, we don’t expect any addition The bond that we issued 10 years ago was a trade of 4.5% plus. The swap all-in was around 7.10, and now we have
Babatunde Ojo: You’re breaking up. I didn’t get all your response. Sorry. I don’t know what…
Humberto Nadal: You have to bear in mind, I mean — did you hear me there?
Babatunde Ojo: No, I didn’t hear you. No, not at all. You were mute for a minute.
Humberto Nadal: Do you hear me now?
Babatunde Ojo: Yes. I can hear you now, correct.
Humberto Nadal: Okay. What I was trying to explain is, I mean, 1.5 years ago, when rates were still low, we managed to structure corporate credit with two banks here to be able to repay — we have just repaid $140 million of the bond. Those bonds, if you add the coupon rate of 4.5% plus the swap, they were at an all-in of 7.10% and the new credit is at a cost of 5.8%. So, if anything, the financial cost is lower.
Babatunde Ojo: Okay. Got it. All right. Thanks, that’s all for me. Thank you so much.
Operator: Thank you. There are no further questions on the phone lines at this time.
Claudia Bustamante: I have two questions from the webcast. So, can — first, could you give more color on the nonrecurring expenses that occur in the fourth quarter?
Manuel Ferreyros: Yes, basically nonrecurrent expenses is, as we mentioned, there is an increase in the bonus that we pay or we negotiate with unions and it’s heavily impacted in the first. It’s basically a three-year arrangement with the union, and has a much higher impact in the first year than in the second and the third. And we have to compare this year with the previous year, the impact has been much higher this year. Also, there is an increase and that depends on the profit, or profit share for the employees. So basically, that’s the two main — the two main impacts in exchanges.
Claudia Bustamante: The next question is, what is your strategy to manage cost going forward?
Humberto Nadal: Yes. I mean we are always working and trying to be extremely efficient our main costs are related to energy. So, coal electricity are the things that are mostly impacting us due to the inflationary pressure. So, looking forward, I mean, we’re going to go into gas, and we’re trying to also make a more efficient — the most efficient we can our coal buying process.
Claudia Bustamante: And the last one is how do you plan to mitigate the risk of not having geographical diversification in your top line?
Humberto Nadal: That’s a very good question. And the fact of the matter is, I mean, 2021, we grew 42%. So yes, I mean, on the one hand, we are very focused and north of Peru. But clearly, it’s a region that has an enormous potential to offer. If we are diversified to give an example, into a neighboring country, we would have taken us 10 years to grow 42%. So yes, we are pretty exposed to a north part of Peru, but we think that in terms of strategy, the growth potential is so immense still there that it pays to be very focused in one region, even though it is risky. I think there’s no more questions, so I’m going to go on with my closing remarks. 2022 was a remarkable year, and I want to raise a remarkable year for us, both in terms of significant advantage in our strategy and an achievement of some financial results.
