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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES
The following tables summarize the Company’s Loans payable and other financial liabilities as of June 30, 2024 and December 31, 2023:
June 30, 2024December 31, 2023
(In millions)
Loans from banks$629 $485 
Bank overdrafts126 33 
Secured lines of credit43 39 
Financial Bills1 — 
Deposit Certificates923 976 
Commercial Notes10 7 
Finance lease obligations33 35 
Collateralized debt424 693 
2026 Sustainability Notes4 4 
2031 Notes9 9 
Other lines of credit1 11 
Current loans payable and other financial liabilities$2,203 $2,292 
Loans from banks$49 $72 
Secured lines of credit11 17 
Financial Bills84 8 
Commercial Notes186 211 
Finance lease liabilities78 96 
Collateralized debt1,057 782 
2026 Sustainability Notes374 389 
2031 Notes599 626 
Other lines of credit1 2 
Non-Current loans payable and other financial liabilities$2,439 $2,203 
Type of instrumentCurrencyInterestWeighted Average Interest Rate MaturityJune 30, 2024December 31, 2023





 (In millions)
Loans from banks
Chilean SubsidiariesChilean PesosFixed7.58%July 2024 - May 2025$110 $104 
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.81%
March 202546 — 
Brazilian Subsidiary (1)
US DollarFixed5.90%August - November 2024223 216 
Brazilian SubsidiaryBrazilian ReaisVariable
TJLP + 0.80%
July 2024 - May 203124 9 
Mexican SubsidiaryMexican PesosVariable
TJLP + 1.59% to 3.5%
July 2024 - June 2027212 178 
Uruguayan SubsidiaryUruguayan PesosFixed8.74%July - September 202459 50 
Colombian SubsidiaryColombian PesosFixed12.59%July 20244 — 
Bank overdrafts
Uruguayan SubsidiaryUruguayan PesosFixed9.29%July 202411 13 
Chilean SubsidiariesChilean PesosVariableTIB + 2.00%July 20247 20 
Brazilian SubsidiaryBrazilian Reais——July 2024108 — 
Secured lines of credit
Argentine SubsidiariesArgentine PesosFixed38.29%July 202433 29 
Mexican SubsidiaryMexican PesosFixed10.42%July 2024 - July 202721 27 
Financial Bills
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.65% - 1.40%
March 2025 - June 202685 8 
Deposit Certificates
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.69%
June 202514 — 
Brazilian SubsidiaryBrazilian ReaisVariable
100% to 150% of CDI
July 2024 - June 2025858 703 
Brazilian SubsidiaryBrazilian ReaisFixed
10.07% - 11.45%
July - December 202424 77 
Brazilian SubsidiaryBrazilian ReaisVariable
104.00% of CDI
August 202427 196 
Commercial Notes
Brazilian SubsidiaryBrazilian ReaisVariable
DI + 0.88%
July 2024 - August 202767 78 
Brazilian SubsidiaryBrazilian ReaisVariable
IPCA + 6.41%
July 2024 - August 2029129 140 
Finance lease liabilities111 131 
Collateralized debt1,481 1,475 
2026 Sustainability NotesUS DollarFixed2.375%July 2024 - January 2026378 393 
2031 NotesUS DollarFixed3.125%July 2024 - January 2031608 635 
Other lines of credit2 13 
$4,642 $4,495 
(1) The carrying amount includes the effect of the derivative instruments that qualified for fair value hedge accounting. See Note 16 – Derivative instruments for further detail.
See Note 14 – Securitization transactions and Note 15 – Leases to these unaudited interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively.
2.375% Sustainability Senior Notes Due 2026 and 3.125% Senior Notes Due 2031
On January 14, 2021, the Company closed a public offering of $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”, and together with the 2026 Sustainability Notes, the “Notes”).
During 2023, the Company repurchased $9 million and $70 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively, plus $1 million of interest accrued. The total amount paid amounted to $66 million. During the three-months ended June 30, 2024, the Company repurchased $15 million and $27 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively. The total amount paid amounted to $38 million. For the six and three-month periods ended June 30, 2024, the Company recognized $5 million as a gain in Interest income and other financial gains in the interim condensed consolidated statements of income.
For additional information regarding the 2026 Sustainability Notes and the 2031 Notes please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K.
2.00% Convertible Senior Notes Due 2028 (“2028 Notes”)
On September 19, 2023, the Company announced its intention to redeem all its 2028 Notes on November 14, 2023. Holders of the 2028 Notes could elect to convert their notes at any time before November 13, 2023. Each $1,000 principal amount of 2028 Notes was convertible into 2.2952 shares of MercadoLibre common stock.
On November 13, 2023, holders of the 2028 Notes converted $439 million principal amount of 2028 Notes into 1,007,597 shares of the Company’s common stock which MercadoLibre held as treasury stock. As of December 31, 2023, no principal amount of 2028 Notes remained outstanding.
For the six and three-month periods ended June 30, 2023, the Company recognized interest expense, including the amortization of issuance costs, of $5 million and $2 million, respectively.
For additional information regarding the 2028 Notes and the 2028 Notes Capped Call Transactions please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K.
Revolving Credit Agreement
On March 31, 2022, the Company, as borrower, and certain of its Subsidiaries, as guarantors, entered into a $400 million revolving credit agreement. For additional information regarding the Credit Agreement please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2023, contained in the Company’s 2023 10-K.
As of June 30, 2024, no amounts have been borrowed under the facility.