DEBT |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | DEBT Bunge’s commercial paper program is supported by an identical amount of committed back-up bank credit lines (the “Liquidity Facility”) provided by banks that are rated at least A-1 by Standard & Poor’s Financial Services and P-1 by Moody’s Investors Service. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At September 30, 2021, there were no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility, and at December 31, 2020, $549 million of borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is Bunge's only revolving credit facility that requires lenders to maintain minimum credit ratings. On July 16, 2021, Bunge amended and extended the Liquidity Facility to July 16, 2026. Bunge's unsecured $1,250 million 364-day Revolving Credit Agreement (the “$1.25 Billion Credit Agreement”) with a group of lenders, comprising a $1,000 million tranche (“Tranche A”) and a $250 million tranche (“Tranche B”), was scheduled to mature on October 21, 2021. On July 16, 2021, Bunge entered into an unsecured $1,000 million 364-day Revolving Credit Agreement (the “$1 Billion Credit Agreement”), with a group of lenders, maturing on July 15, 2022. Bunge may, from time to time, request one or more of the existing or new lenders to increase the total participations under the $1 Billion Credit Agreement by an aggregate amount up to $250 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $1 Billion Credit Agreement. The $1 Billion Credit Agreement replaces the existing $1.25 Billion Credit Agreement. Bunge had no borrowings outstanding at September 30, 2021 under the $1 Billion Credit Agreement. Bunge's unsecured committed $1,100 million five-year syndicated revolving credit agreement (the “$1.1 Billion Credit Agreement”) with certain lenders party thereto, was scheduled to mature on December 14, 2023. On July 16, 2021, Bunge entered into an unsecured committed $1.35 Billion 5-year Revolving Credit Agreement (the “$1.35 Billion Credit Agreement”) with a group of lenders, maturing July 16, 2026. Bunge may, from time to time, request one or more of the existing or new lenders to increase the total commitments under the $1.35 Billion Credit Agreement by an aggregate amount up to $200 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $1.35 Billion Credit Agreement. The $1.35 Billion Credit Agreement replaces the existing $1.1 Billion Credit Agreement. Bunge had no borrowings outstanding at September 30, 2021 under the $1.35 Billion Credit Agreement. Bunge had no borrowings outstanding at September 30, 2021 under its $1,750 million unsecured committed syndicated revolving credit facility with certain lenders party thereto maturing December 12, 2022 (the “$1.75 Billion 2022 Facility”). Borrowings under the $1.75 Billion 2022 Facility bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30% per annum, based on the credit ratings of Bunge's senior long-term unsecured debt. The applicable margin is also subject to certain premiums or discounts tied to criteria determined by certain sustainability targets. Bunge also pays a fee that varies from 0.10% to 0.40% per annum, based on the utilization of the $1.75 Billion 2022 Facility. Bunge may, from time to time, with the consent of the facility agent, request one or more of the existing lenders or new lenders to increase the total commitments under the $1.75 Billion 2022 Facility by up to $250 million pursuant to an accordion provision. Bunge had no borrowings outstanding at September 30, 2021 under its unsecured $865 million revolving credit facility, maturing September 6, 2022 (the “$865 Million 2022 Facility”). Borrowings under the $865 Million 2022 Facility bear interest at LIBOR plus an applicable margin based on the credit ratings of Bunge's senior long-term unsecured debt, as defined in the $865 Million 2022 Facility. On February 23, 2021, Bunge entered into an unsecured committed $375 million 364-day Revolving Credit Agreement (the “$375 Million Credit Agreement”) with a lender. The $375 Million Credit Agreement bears interest at LIBOR plus an applicable margin, as defined in the $375 Million Credit Agreement, and was scheduled to mature on February 22, 2022. On July 16, 2021, the Company terminated the $375 Million Credit Agreement. At September 30, 2021, Bunge had total committed revolving credit facilities of $5,565 million with a number of financial institutions, of which $5,565 million was unused and available. At December 31, 2020, Bunge had total committed revolving credit facilities of $5,565 million with a number of financial institutions, of which $4,072 million was unused and available. In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At September 30, 2021 and December 31, 2020 there were no borrowings and $550 million borrowings, respectively, outstanding under these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $902 million and $785 million in short-term borrowings outstanding under local bank lines of credit at September 30, 2021 and December 31, 2020, respectively, to support working capital requirements. On February 25, 2021, Bunge entered into an unsecured syndicated $250 million 364-day term loan (the “$250 Million Term Loan”) with a group of lenders. The $250 Million Term Loan bears interest at LIBOR plus an applicable margin, as defined in the $250 Million Term Loan. The $250 Million Term Loan matures on February 24, 2022 and was fully drawn as of September 30, 2021. On February 23, 2021, Bunge entered into an unsecured $125 million 364-day term loan (the “$125 Million Term Loan”) with a lender. The $125 Million Term Loan bears interest at LIBOR plus an applicable margin, as defined in the $125 Million Term Loan. The $125 Million Term Loan was scheduled to mature on February 22, 2022. On July 16, 2021, Bunge prepaid the outstanding balance of the $125 Million Term Loan. The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||