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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES
 9 Months Ended
Sep. 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 September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
(In millions)
Loans from banks$680 $485 
Bank overdrafts1 33 
Secured lines of credit65 39 
Financial Bills8 — 
Deposit Certificates1,058 976 
Commercial Notes2 7 
Finance lease liabilities
32 35 
Collateralized debt390 693 
2026 Sustainability Notes2 4 
2031 Notes4 9 
Other lines of credit8 11 
Current loans payable and other financial liabilities$2,250 $2,292 
Loans from banks$169 $72 
Secured lines of credit8 17 
Financial Bills272 8 
Commercial Notes192 211 
Finance lease liabilities69 96 
Collateralized debt1,455 782 
2026 Sustainability Notes362 389 
2031 Notes575 626 
Other lines of credit1 2 
Non-Current loans payable and other financial liabilities$3,103 $2,203 
Type of instrumentCurrencyInterestWeighted Average Interest Rate MaturitySeptember 30, 2024December 31, 2023





 (In millions)
Loans from banks
Chilean SubsidiariesChilean PesosFixed7.18%October 2024 - September 2025$126 $104 
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.81%
March 202549 — 
Brazilian Subsidiary (1)
US DollarFixed5.90%November 202453 216 
Brazilian Subsidiary (1)
EurosFixed4.26%September 2025128 — 
Brazilian SubsidiaryBrazilian ReaisVariable
TJLP + 0.80%
October 2024 - May 203124 9 
Mexican SubsidiariesMexican PesosVariable
TIIE + 1.59% - 3.5%
October 2024 - August 2029421 178 
Uruguayan SubsidiaryUruguayan PesosFixed8.78%October - December 202448 50 
Bank overdrafts
Uruguayan SubsidiaryUruguayan Pesos——October 20241 13 
Chilean SubsidiariesChilean Pesos———— 20 
Secured lines of credit
Argentine SubsidiariesArgentine PesosFixed42.21%October 202456 29 
Mexican SubsidiaryMexican PesosFixed10.51%October 2024 - July 202717 27 
Financial Bills
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.45% - 1.40%
March 2025 - September 2027280 8 
Deposit Certificates
Brazilian SubsidiaryBrazilian ReaisVariable
CDI + 0.32% - 0.69%
October 2024 - September 2025227 — 
Brazilian SubsidiaryBrazilian ReaisVariable
98% to 150% of CDI
October 2024 - September 2025769 703 
Brazilian SubsidiaryBrazilian ReaisFixed
10.10% - 11.91%
October 2024 - March 202534 77 
Brazilian SubsidiaryBrazilian ReaisVariable
101.50% of CDI
October 202428 196 
Commercial Notes
Brazilian SubsidiaryBrazilian ReaisVariable
DI + 0.88%
October 2024 - August 202767 78 
Brazilian SubsidiaryBrazilian ReaisVariable
IPCA + 6.41%
October 2024 - August 2029127 140 
Finance lease liabilities101 131 
Collateralized debt1,845 1,475 
2026 Sustainability NotesUS DollarFixed2.375%January 2025 - January 2026364 393 
2031 NotesUS DollarFixed3.125%January 2025 - January 2031579 635 
Other lines of credit9 13 
$5,353 $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 on the 2026 Sustainability Notes and 2031 Notes. The total amount paid during 2023 for those repurchases amounted to $66 million. During 2024, the Company repurchased $27 million and $51 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively. The total amount paid during 2024 for those repurchases amounted to $71 million.
For the nine-month periods ended September 30, 2023, the Company recognized $8 million as a gain in Interest income and other financial gains in the unaudited interim condensed consolidated statements of income. For the nine and three-month periods ended September 30, 2024, the Company recognized $8 million and $3 million as gain in Interest income and other financial gains in the interim condensed consolidated statements of income, respectively.
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 nine and three-month periods ended September 30, 2023, the Company recognized interest expense, including the amortization of issuance costs, of $7 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.
Amended and Restated Revolving Credit Agreement
On September 27, 2024, the Company entered into a $400 million amended and restated revolving credit agreement (the “Amended and Restated Credit Agreement”) with the lenders party thereto and the Company’s subsidiaries MercadoLibre S.R.L., Ebazar.com.br Ltda., Mercado Pago Instituição de Pagamento Ltda., DeRemate.com de Mexico S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre Chile Ltda., and MercadoLibre Colombia Ltda. as initial guarantors (collectively, the “Initial Guarantors”). The Company’s obligations under the Amended and Restated Credit Agreement are guaranteed by the Initial Guarantors.
The interest rates under the Amended and Restated Credit Agreement are based on Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.00% per annum, which may be decreased to 0.90% per annum or increased to 1.15% per annum depending on the Company’s debt rating, as further provided under the Amended and Restated Credit Agreement. Any loans drawn from the Amended and Restated Credit Agreement must be repaid on or prior to September 27, 2028, which will be automatically extended to September 27, 2029 upon satisfaction, on or prior to August 28, 2027, of the Maturity Extension Conditions (as defined in the Amended and Restated Credit Agreement), as further provided in the Amended and Restated Credit Agreement. The Company is also obligated to pay a commitment fee on the unused amounts of the facility at a rate per annum equal to 25% of the then Applicable Margin, depending on the Company’s debt rating, as further provided under the Amended and Restated Credit Agreement.
As of September 30, 2024, no amounts have been borrowed under the facility.