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v3.21.1

Bank Loans and Notes Payables | 12 Months Ended
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Dec. 31, 2020
Disclosure of detailed information about borrowings [abstract] |
Bank Loans and Notes Payables | Bank Loans and Notes Payables
Expressed in millions of mexican pesos. (1) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 and following years | Carrying value as of December 31, 2020 | Fair value as of December 31, 2020 | Carrying value as of December 31, 2019
Short- term debt:
Fixed rate debt: |  |  |  |  |  |  |  |  |
Colombian pesos |  |  |  |  |  |  |  |  |
Bank loans | — | — | — | — | — | — | — | — | 230
Interest rate | — | — | — | — | — | — | — |  | 4.37%
Argentine pesos |  |  |  |  |  |  |  |  |
Bank loans | 711 | — | — | — | — | — | 711 | 711 | 126
Interest rate | 44.73% | — | — | — | — | — | 44.73% |  | 63.50%
Uruguayan pesos |  |  |  |  |  |  |  |  |
Bank loans | 498 | — | — | — | — | — | 498 | 498 | 63
Interest rate | 15.13% | — | — | — | — | — | 15.13% |  | 11.59%
Subtotal | 1,209 | — | — | — | — | — | 1,209 | 1,209 | 419
Variable rate debt: |  |  |  |  |  |  |  |  |
Colombian pesos |  |  |  |  |  |  |  |  |
Bank loans | 436 | — | — | — | — | — | 436 | 436 | 431
Interest rate | 3.08% | — | — | — | — | — | 3.08% |  | 4.66%
Argentine pesos |  |  |  |  |  |  |  |  |
Bank loans | — | — | — | — | — | — | — | — | 32
Interest rate | — | — | — | — | — | — | — |  | 54.25%
Subtotal | 436 | — | — | — | — | — | 436 | 436 | 463
Short- term debt | 1,645 | — | — | — | — | — | 1,645 | 1,645 | 882
Long term debt:
Fixed rate debt: |  |  |  |  |  |  |  |  |
U.S. Dollar |  |  |  |  |  |  |  |  |
Yankee bond | — | — | — | — | — | 50,598 | 50,598 | 57,967 | 37,575
Interest rate | — | — | — | — | — | 3.09% | 3.09% |  | 4.48%
Mexican pesos |  |  |  |  |  |  |  |  |
Senior notes | 2,500 | — | 7,497 | — | — | 11,486 | 21,483 | 22,638 | 18,484
Interest rate | 8.27% | — | 5.46% | — | — | 7.73% | 7.00% |  | 6.95%
Expressed in millions of mexican pesos. (1) | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 and following years | Carrying value as of December 31, 2020 | Fair value as of December 31, 2020 | Carrying value as of December 31, 2019
Brazilian reais |  |  |  |  |  |  |  |  |
Bank loans | 59 | 50 | 29 | 19 | — | — | 157 | 157 | 309
Interest rate | 6.04% | 6.05% | 6.40% | 6.62% | — | — | 6.18% |  | 6.05%
Uruguayan pesos |  |  |  |  |  |  |  |  |
Bank loans | 770 | 261 | — | — | — | — | 1,031 | 1,032 | 1,266
Interest rate | 10.29% | 8.04% | — | — | — | — | 9.72% |  | 10.01%
Subtotal | 3,329 | 311 | 7,526 | 19 | — | 62,084 | 73,269 | 81,794 | 57,634
Variable rate debt: |  |  |  |  |  |  |  |  |
Mexican pesos |  |  |  |  |  |  |  |  |
Senior notes | — | 1,459 | — | — | 1,722 | — | 3,181 | 3,176 | 1,459
Interest rate | — | 4.73% | — | — | 4.56% | — | 4.64% |  | 7.99%
Bank loans | — | — | — | — | 3,737 | 5,598 | 9,335 | 9,400 | 9,358
Interest rate | — | — | — | — | 4.89% | 5.15% | 5.04% |  | 8.20%
Colombian pesos |  |  |  |  |  |  |  |  |
Bank loans | — | — | — | — | — | — | — | — | 402
Interest rate | — | — | — | — | — | — | — |  | 5.61%
Brazilian reais |  |  |  |  |  |  |  |  |
Bank loans | 43 | 5 | — | — | — | — | 48 | 48 | 242
Interest rate | 8.45% | 8.37% | — | — | — | — | 8.44% |  | 7.82%
Subtotal | 43 | 1,464 | — | — | 5,459 | 5,598 | 12,564 | 12,624 | 11,461
Long term debt | 3,372 | 1,775 | 7,526 | 19 | 5,459 | 67,682 | 85,833 | 94,418 | 69,095
Current portion of long term debt | 3,372 | — | — | — | — | — | 3,372 | — | 10,603
Long- term debt | — | 1,775 | 7,526 | 19 | 5,459 | 67,682 | 82,461 | 94,418 | 58,492
(1)All interest rates shown in this table are weighted average contractual annual rates. For the years ended December 31, 2020, 2019 and 2018, the interest expense related to the bank loans and notes payable is comprised as follows and included in the consolidated income statement under the interest expense caption:
| 2020 | 2019 | 2018
Interest on debts and borrowings | Ps. 6,228 | Ps. 4,459 | Ps. 4,786
Finance charges for employee benefits | 231 | 200 | 202
Derivative instruments | 1,174 | 1,946 | 2,370
Finance charges of leases | 105 | 129 | —
Finance operating charges | 156 | 170 | 210
| Ps. 7,894 | Ps. 6,904 | Ps. 7,568
The Company has the following debt bonds: a) registered with the Mexican stock exchange: i) Ps. 2,500 (nominal amount) with a maturity date in 2021 and fixed interest rate of 8.27%, ii) Ps. 7,500 (nominal amount) with a maturity date in 2023 and fixed interest rate of 5.46%, iii) Ps. 1,500 (nominal amount) with a maturity date in 2022 and floating interest rate of TIIE + 0.25%, iv) Ps. 8,500 (nominal amount) with a maturity date in 2027 and fixed interest rate of 7.87%, v) Ps. 1,727 (nominal amount) with a maturity date in 2025 and floating interest rate of TIIE + 0.08%, and vi) Ps. 3,000 (nominal amount) with a maturity date in 2028 and fixed interest rate of 7.35%, and b) registered with the SEC : i) Senior notes of US. $ 1,250 with interest at a fixed rate of 2.75% and maturity date on January 22, 2030, ii) Senior notes of US. $ 705 with interest at a fixed rate of 1.85% and maturity date on September 1, 2032 and iii) Senior notes of US. $ 600 with interest at a fixed rate of 5.25% and maturity date on November 26, 2043 all of which are guaranteed by our subsidiaries: Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., Distribuidora y Manufacturera del Valle de Mexico, S. de R.L. de C.V (as successor guarantor of Servicios Integrados Inmuebles del Golfo, S. de R.L. de C.V.) and Yoli de Acapulco, S. de R.L. de C.V. (“Guarantors”). In Note 29 we present supplemental guarantors consolidating financial information. During 2019, the Company had credit contracts in Mexico for an amount of Ps. 9,400 at an interest rate of 8.39% and 7.91%, such loans were used to settle 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. 1,670. During 2020, the Company obtained (and paid off) bank loans to build liquidity in light of the recent COVID-19 pandemic: in Mexico for an amount of Ps. 15,650 at a weighted interest rate of 6.04%, in Argentina and Colombia for an amount of Ps. 1,184. Similarly, on January 22, 2020 the Company prepaid senior notes in Mexico for US. $ 900, and on February 18, 2020, the Company paid the total balance of its senior notes for US. $ 500. In addition, the Company celebrated bank loans in Argentine and Uruguayan peso with some banks for Ps. 711 and Ps. 759 (nominal amounts) respectively. The Company has financing from different financial institutions under agreements that stipulate different restrictions and covenants, which mainly consist of maximum levels of leverage and capitalization as well as minimum consolidated net worth and debt and interest coverage ratios. As of the date of these consolidated financial statements, the Company was in compliance with all restrictions and covenants contained in its financing agreements. 19.1 Reconciliation of liabilities arising from financing activities.
|  | Cash flows |  | Non-cash impact |
| Carrying Value at December 31, 2019 | Repayments | Proceeds |  | New leases | Others | Foreign Exchange movement | Translation Effect | Carrying Value at December 31, 2020
Short-term bank loans | Ps. 882 | Ps. (17,641) | Ps. 18,525 |  | Ps. — | Ps. — | Ps. — | Ps. (121) | Ps. 1,645
Short-term notes payable | — | — | — |  | — | — | — |  | —
Total short-term from financing activities | Ps. 882 | Ps. (17,641) | Ps. 18,525 |  | Ps. — | Ps. — | Ps. — | Ps. (121) | Ps. 1,645
Long-term bank loans | 11,576 | (896) | 293 |  | — | — | — | (405) | 10,568
Long-term notes payable | 57,519 | (26,650) | 43,479 |  | — | — | 1,018 | (101) | 75,265
Total long-term from financing activities | Ps. 69,095 | Ps. (27,546) | Ps. 43,772 |  | Ps. — | Ps. — | Ps. 1,018 | Ps. (506) | Ps. 85,833
Lease liabilities | Ps. 1,383 | Ps. (573) | Ps. — |  | Ps. 599 | Ps. 34 | Ps. (13) | Ps. (123) | Ps. 1,306
Total from financing activities | Ps. 71,360 | Ps. (45,760) | Ps. 62,297 |  | Ps. 599 | Ps. 34 | Ps. 1,005 | Ps. (750) | Ps. 88,784
|  | Cash flows |  | Non-cash impact |
| Carrying Value at December 31, 2018 | Repayments | Proceeds |  | New leases | Others | Foreign Exchange movement | Translation Effect | Carrying Value at December 31, 2019
Short-term bank loans | Ps. 1,382 | Ps. (852) | Ps. 503 |  | Ps. — | Ps. — | Ps. — | Ps. (151) | Ps. 882
Short-term notes payable | — | — | — |  | — | — | — | — | —
Total short-term from financing activities | Ps. 1,382 | Ps. (852) | Ps. 503 |  | Ps. — | Ps. — | Ps. — | Ps. (151) | Ps. 882
Long-term bank loans | 16,572 | (14,926) | 10,233 |  | — | — | — | (303) | 11,576
Long-term notes payable | 63,841 | (4,674) | — |  | — | — | (1,589) | (59) | 57,519
Long-term lease liabilities | 10 | (8) | — |  | — | — | (1) | (1) | —
Total long-term from financing activities | Ps. 80,423 | Ps. (19,608) | Ps. 10,233 |  | Ps. — | Ps. — | Ps. (1,590) | Ps. (363) | Ps. 69,095
Lease liabilities (1) | Ps. 1,798 | Ps. (492) | Ps. — |  | Ps. 215 | Ps. (21) | Ps. (37) | Ps. (80) | Ps. 1,383
Total from financing activities | Ps. 83,603 | Ps. (20,952) | Ps. 10,736 |  | Ps. 215 | Ps. (21) | Ps. (1,627) | Ps. (594) | Ps. 71,360
(1) Beginning balance as of adoption date; January 1st, 2019

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