XML 77 R20.htm IDEA: XBRL DOCUMENT

Bank Loans and Notes Payables

9 Months Ended

Sep. 30, 2019

Note 14. Bank Loans and Notes Payable

As of September 30, 2019, Company’s bank loans and notes payable are as follows:


(In millions of mexican pesos)	2020			2021			2022			2023			2024			2025 And following years			Carrying Value as September 30, 2019			Fair Value as of September 30, 2019		Carrying value as of December 31 2018
Short-term debt Fixed rate debt:
Argentine pesos
Bank loans	Ps.	136		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	—		Ps.	136		Ps.	122	Ps.	157
Interest rate		63.50	%		—			—			—			—			—			63.50	%		—		36.75	%
Uruguayan pesos
Bank loans		—			—			—			—			—			—			—			—		771
Interest rate		—			—			—			—			—			—			—			—		9.96	%

Subtotal		136			—			—			—			—			—			136			122		928

Variable rate debt:
Colombian pesos
Bank loans		426			—			—			—			—			—			426			425		454
Interest rate		4.68	%		—			—			—			—			—			4.68	%		—		5.58	%
Argentine pesos
Bank loans		34			—			—			—			—			—			34			33		—
Interest rate		75.27	%		—			—			—			—			—			75.27	%		—		—

Subtotal		460			—			—			—			—			—			460			458		454

Short-term debt		596			—			—			—			—			—			596			580		1,382

Long-term debt:
Fixed rate debt:
U.S. Dollar
Yankee bond		9,813			—			—			17,537			—			11,791			39,141			43,644		39,204
Interest rate		4.63	%		—			—			3.88	%		—			5.25	%		4.48	%		—		4.48	%
Brazilian reals
Notes Payable (2)		4,641			—			—			—			—			—			4,641			4,641		4,653
Interest rate		0.38	%		—			—			—			—			—			0.38	%		—		0.38	%
Bank loans		135			95			58			37			24			1			350			349		522
Interest rate		6.03	%		6.03	%		6.03	%		6.03	%		6.03	%		6.03	%		6.03	%		—		5.95	%
Mexican pesos
Senior notes		—			2,499			—			7,496			—			8,488			18,483			18,131		18,481
Interest rate		—			8.27	%		—			5.46	%		—			7.87	%		6.95	%		—		6.95	%
Uruguayan pesos
Bank loans		502			821			—			—			—			—			1,323			1,323		573
Interest rate		10.15	%		9.42	%		—			—			—			—			9.70	%		—		10.15	%
U.S. Dollar
Financial leasings		3			—			—			—			—			—			3			—		10
Interest rate		3.28	%																	3.28	%				3.28	%

Subtotal		15,094			3,415			58			25,070			24			20,280			63,941			68,088		63,443

Variable rate debt:
Mexican pesos
Senior notes		—			—			1,497			—			—			—			1,497			1,389		1,497
Interest rate		—			—			8.44	%		—			—			—			8.44	%		—		8.61	%
Bank loans		—			—			—			—			338			9,062			9,400			9,400		10,100
Interest rate		—			—			—			—			8.85	%		8.66	%		8.67	%		—		8.56	%
U.S. Dollar
Bank loans		—			—			—			—			—			—			—			—		4,025
Interest rate		—			—			—			—			—			—			—			—		3.34	%
Colombian pesos
Bank loans		794			—			—			—			—			—			794			794		848
Interest rate		5.55	%		—			—			—			—			—			5.55	%		—		5.67	%
Brazilian reals
Bank loans		215			71			6			—			—			—			292			292		505
Interest rate		8.64	%		8.64	%		8.64	%		—			—			—			8.64	%		—		9.53	%
Notes Payable		—			—			—			—			—			—			—			—		5
Interest rate		—			—			—			—			—			—			—			—		0.40	%

Subtotal		1,009			71			1,503			—			338			9,062			11,983			11,875		16,980

Long - term debt:		16,103			3,486			1,561			25,070			362			29,342			75,924			79,963		80,423

Current portion of long term debt		16,103			—			—			—			—			—			16,103			—		10,222

Long-term debt		—			3,486			1,561			25,070			362			29,342			59,821			79,963		70,201

(1)	All interest rates shown in this table are weighted average contractual annual rates.

(2)

Promissory note denominated and payable in Brazilian reais; however, it is linked to the performance of the exchange rate between the Brazilian real and the U.S. dollar. As a result, the principal amount under the promissory note may be increased or reduced based on the depreciation or appreciation of the Brazilian real relative to the U.S. dollar.

During 2019 Coca-Cola FEMSA celebrated

bank loans

Mexico for an amount of

Ps.9,400

at an interest rate of 9.09% and 8.63%,

and the proceed

were used to settled bank loans denominated in USD and for general corporate purposes. Additionally the Company obtained

during 2019 bank loans in Uruguay, Colombia and Argentina for an amount of Ps.

1,471

For the nine-month period ended September 30, 2019 and 2018, the interest expense is comprised as follows:


	September 30, 2019		September 30, 2018
Interest on debts and borrowings	Ps.	3,337	Ps.	3,389
Finance charges for employee benefits		150		142
Derivative instruments		1,499		1,710
Finance charges for leases		99		—
Finance operating charges		150		220

	Ps.	5,235	Ps.	5,461