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17 Borrowings and financing | 12 Months Ended
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Dec. 31, 2020
Borrowings [abstract] |
Borrowings and financing |
17 | Borrowings and financing
Borrowings and financing outstanding balance | December 31, 2020 | December 31, 2019
Financial institution | Current | Noncurrent | Total | Current | Noncurrent | Total
Local currency |  |  |  |  |  |
10st issue debentures | - | - | - | 41,021 | - | 41,021
12nd issue debentures | 45,450 | 158,425 | 203,875 | 45,450 | 203,829 | 249,279
14th issue debentures | 51,873 | 24,205 | 76,078 | 41,940 | 63,012 | 104,952
17th issue debentures | 91,850 | 183,335 | 275,185 | 289,211 | 263,226 | 552,437
18th issue debentures | 45,918 | 135,105 | 181,023 | 34,239 | 133,679 | 167,918
21st issue debentures | 175,000 | 174,769 | 349,769 | 150,000 | 349,660 | 499,660
22nd issue debentures | 99,969 | 678,149 | 778,118 | - | 765,689 | 765,689
23rd issue debentures | - | 864,678 | 864,678 | - | 864,603 | 864,603
24th issue debentures | - | 414,994 | 414,994 | - | 395,855 | 395,855
25th issue debentures | 1,442,610 | - | 1,442,610 | - | - | -
26th issue debentures | - | 1,047,767 | 1,047,767 | - | - | -
27th issue debentures | - | 997,000 | 997,000 | - | - | -
Brazilian Federal Savings Bank | 90,382 | 1,324,459 | 1,414,841 | 83,519 | 1,341,660 | 1,425,179
Brazilian Development Bank - BNDES PAC | 13,185 | 20,247 | 33,432 | 11,184 | 27,854 | 39,038
Brazilian Development Bank - BNDES PAC II 9751 | 7,159 | 37,447 | 44,606 | 6,990 | 40,685 | 47,675
Brazilian Development Bank - BNDES PAC II 9752 | 4,851 | 25,470 | 30,321 | 3,913 | 24,457 | 28,370
Brazilian Development Bank - BNDES ONDA LIMPA | 26,751 | 86,809 | 113,560 | 23,704 | 100,582 | 124,286
Brazilian Development Bank - BNDES TIETÊ III | 86,823 | 542,519 | 629,342 | 52,874 | 383,191 | 436,065
Brazilian Development Bank - BNDES 2015 | 33,558 | 454,126 | 487,684 | 31,712 | 460,646 | 492,358
Brazilian Development Bank - BNDES 2014 | 5,143 | 23,017 | 28,160 | 4,659 | 25,411 | 30,070
Inter-American Development Bank - BID 2202 | 181,349 | 2,524,798 | 2,706,147 | - | - | -
Inter-American Development Bank - BID INVEST | 44,815 | 898,060 | 942,875 | - | - | -
Leases (Concession Agreements, Program Contracts and Contract Assets) | 28,847 | 399,896 | 428,743 | 27,314 | 432,357 | 459,671
Leases (Others) | 36,576 | 9,300 | 45,876 | 51,088 | 23,365 | 74,453
Other | 3,778 | 11,382 | 15,160 | 1,665 | 8,207 | 9,872
Interest and charges | 158,918 | - | 158,918 | 77,460 | - | 77,460
Total in local currency | 2,674,805 | 11,035,957 | 13,710,762 | 977,943 | 5,907,968 | 6,885,911
Borrowings and financing outstanding balance | December 31, 2020 | December 31, 2019
Financial institution | Current | Noncurrent | Total | Current | Noncurrent | Total
Foreign currency |  |  |  |  |  |
Inter-American Development Bank - BID 1212 – US$51,390 thousand (US$61,668 thousand in December 2019) | 53,412 | 213,649 | 267,061 | 41,428 | 207,140 | 248,568
Inter-American Development Bank - BID 2202 – (US$510,573 thousand in December 2019) | - | - | - | 128,623 | 1,914,298 | 2,042,921
Inter-American Development Bank - BID 4623 – US$10,220 thousand | - | 46,474 | 46,474 | - | - | -
International Bank of Reconstruction and Development -BIRDs 7662 e 8906 – US$82,792 thousand (US$88,871 thousand in December 2019) | 31,594 | 393,949 | 425,543 | 24,505 | 330,898 | 355,403
Eurobonds – (US$350,000 thousand in December 2019) | - | - | - | 1,409,921 | - | 1,409,921
JICA 15 – ¥10,371,870 thousand (¥11,524,300 thousand in December 2019) | 58,117 | 464,936 | 523,053 | 42,813 | 385,315 | 428,128
JICA 18 – ¥9,325,440 thousand (¥10,361,600 thousand in December 2019) | 52,253 | 417,846 | 470,099 | 38,493 | 346,237 | 384,730
JICA 17 – ¥3,349,203 thousand (¥2,830,420 thousand in December 2019) | 11,260 | 156,738 | 167,998 | 12,466 | 91,845 | 104,311
JICA 19 – ¥29,923,047 thousand (¥31,736,565 thousand in December 2019) | 91,456 | 1,415,683 | 1,507,139 | 67,372 | 1,109,644 | 1,177,016
BID 1983AB – US$23,077 thousand (US$40,769 thousand in December 2019) | 39,975 | 78,943 | 118,918 | 71,312 | 91,521 | 162,833
Interest and charges | 21,577 | - | 21,577 | 44,967 | - | 44,967
Total in foreign currency | 359,644 | 3,188,218 | 3,547,862 | 1,881,900 | 4,476,898 | 6,358,798
Total borrowings and financing | 3,034,449 | 14,224,175 | 17,258,624 | 2,859,843 | 10,384,866 | 13,244,709
Exchange rate as of December 31, 2020: US$5.1967; ¥0.05043 (as of December 31, 2019: US$4.0307; ¥0.03715). As of December 31, 2020, the Company did not have balances of borrowings and financing, raised during the year, to mature within 12 months.
Local currency | Guarantees | Maturity | Annual interest rates | Inflation adjustment
10th issue debentures | Own funds | 2020 | TJLP +1.92% (Series 1 and 3) and 9.53% (Series 2) | IPCA (Series 2)
12nd issue debentures | Own funds | 2025 | TR + 9.5% |
14th issue debentures | Own funds | 2022 | TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) | IPCA (Series 2)
17th issue debentures | Own funds | 2023 | CDI +0.75% (Series 1) and 4.5% (Series 2) and4.75% (Series 3) | IPCA (Series 2 and 3)
18th issue debentures | Own funds | 2024 | TJLP 1.92 % (Series 1 and 3) and 8.25% (Series 2) | IPCA (Series 2)
21st issue debentures | Own funds | 2022 | CDI + 0.60% e CDI+ 0.90% |
22nd issue debentures | Own funds | 2025 | CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) | IPCA (Series 3)
23rd issue debentures | Own funds | 2027 | CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) |
24th issue debentures | Own funds | 2029 | 3.20% (Series 1) and 3.37% (Series 2) | IPCA (Series 1 and 2)
25th issue debentures | Own funds | 2021 | CDI + 3.3% |
26th issue debentures | Own funds | 2030 | 4.65% (series 1) and 4.95% (series 2) | IPCA (series 1 and 2)
27th issue debentures | Own funds | 2027 | CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) |
Brazilian Federal Savings Bank | Own funds | 2021/2042 | 5% to 9.5% | TR
Brazilian Development Bank - BNDES PAC | Own funds | 2023 | TJLP+1.82% |
Brazilian Development Bank - BNDES PAC II 9751 | Own funds | 2027 | TJLP+1.72% |
Brazilian Development Bank - BNDES PAC II 9752 | Own funds | 2027 | TJLP+1.72% |
Brazilian Development Bank - BNDES ONDA LIMPA | Own funds | 2025 | TJLP+1.92% |
Brazilian Development Bank - BNDES TIETÊ III | Own funds | 2028 | TJLP+1.66% |
Brazilian Development Bank - BNDES 2015 | Own funds | 2035 | TJLP+2.18% |
Brazilian Development Bank - BNDES 2014 | Own funds | 2026 | TJLP+1.76% |
Inter-American Development Bank – BID 2202 | Government | 2035 | CDI+0.86% |
Inter-American Development Bank – BID INVEST | Own funds | 2034 | CDI+1.90% and CDI+2.70% |
Leases (Concession Agreements, Program Contracts and Contract Assets) |  | 2035 | 7.73% to 10.12% | IPC
Leases (Others) |  | 2023 | 4.24% to 9.29% |
Other | Own funds | 2025 | 3% (FEHIDRO) and TJLP + 1.5% (FINEP) |
Foreign currency | Guarantees | Maturity | Annual interest rates | Exchange rate changes
Inter-American Development Bank - BID 1212 - US$51,390 thousand | Government | 2025 | 3.31% (*) | US$
Inter-American Development Bank - BID 4623 - US$10,220 thousand | Government | 2044 | 1.12% (*) | US$
International Bank for Reconstruction and Development – BIRDs 7662 and 8906 - US$82,792 thousand | Government | 2034 | 2.85% (*) | US$
JICA 15 – ¥10,371,870 thousand | Government | 2029 | 1.8% and 2.5% | Yen
JICA 18 – ¥9,325,440 thousand | Government | 2029 | 1.8% and 2.5% | Yen
JICA 17– ¥3,349,203 thousand | Government | 2035 | 1.2% and 0.01% | Yen
JICA 19– ¥29,923,047 thousand | Government | 2037 | 1.7% and 0.01% | Yen
BID 1983AB – US$23,077 thousand | - | 2023 | 2.08% to 2.38% (*) | US$
(*)Rates comprising LIBOR + contractually defined spread. (i) Payment schedule – book value as of December 31, 2020
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 to 2044 | TOTAL
LOCAL CURRENCY |  |  |  |  |  |  |  |
Debentures | 1,952,670 | 582,192 | 681,272 | 918,988 | 485,012 | 378,849 | 1,632,114 | 6,631,097
Brazilian Federal Savings Bank | 90,382 | 95,391 | 88,779 | 87,749 | 93,243 | 99,082 | 860,215 | 1,414,841
BNDES | 177,470 | 177,472 | 171,350 | 164,288 | 144,093 | 134,841 | 397,591 | 1,367,105
BID 2202 | 181,349 | 181,349 | 181,349 | 181,349 | 181,349 | 181,349 | 1,618,053 | 2,706,147
BID INVEST | 44,815 | 89,630 | 89,630 | 89,630 | 89,630 | 89,630 | 449,910 | 942,875
Leases (Concession Agreements, Program Contracts and Contract Assets) | 28,847 | 32,663 | 35,004 | 38,017 | 41,387 | 36,536 | 216,289 | 428,743
Leases (Others) | 36,576 | 8,892 | 408 | - | - | - | - | 45,876
Other | 3,778 | 4,038 | 3,977 | 1,757 | 1,610 | - | - | 15,160
Interest and charges | 159,918 | - | - | - | - | - | - | 159,918
TOTAL IN LOCAL CURRENCY | 2,674,805 | 1,171,627 | 1,251,769 | 1,481,778 | 1,036,324 | 920,287 | 5,174,172 | 13,710,762
FOREIGN CURRENCY |  |  |  |  |  |  |  |
BID | 53,412 | 53,412 | 53,412 | 53,412 | 54,810 | 2,795 | 42,282 | 313,535
BIRD | 31,594 | 31,594 | 31,594 | 31,594 | 31,594 | 31,594 | 235,979 | 425,543
JICA | 213,086 | 213,086 | 213,086 | 213,086 | 213,086 | 213,086 | 1,389,773 | 2,668,289
BID 1983AB | 39,975 | 39,975 | 38,968 | - | - | - | - | 118,918
Interest and charges | 21,577 | - | - | - | - | - | - | 44,967
TOTAL IN FOREIGN CURRENCY | 359,644 | 338,067 | 337,060 | 298,092 | 299,490 | 247,475 | 1,668,034 | 3,547,862
Overall Total | 3,034,449 | 1,509,694 | 1,588,829 | 1,779,870 | 1,335,814 | 1,167,762 | 6,842,206 | 17,258,624
(ii) Changes
| December 31, 2019 | Foreign/local currency translation | Addition (lease) | Funding | Borrowing costs | Monetary and exchange variation | Inflation adjustment / exchange variation and incorporated interest – Capitalized | Interest paid | Amortization | Accrued interest | Provision for interest and fees – Capitalized | Expenses with borrowing costs | December 31, 2020
LOCAL CURRENCY |  |  |  |  |  |  |  |  |  |  |  |  |
Debentures | 3,711,228 | - | - | 3,507,640 | (52,328) | 86,939 | - | (161,494) | (572,871) | 201,150 | 26,073 | 10,167 | 6,756,504
Brazilian Federal Savings Bank | 1,429,250 | - | - | 74,485 | - | - | - | (111,601) | (84,821) | 73,067 | 38,452 | - | 1,418,832
BNDES | 1,201,411 | - | - | 213,514 | - | - | - | (47,164) | (81,213) | 47,668 | 36,427 | 259 | 1,370,902
BID 2202 | - | 2,807,371 | - | - | - | - | - | (37,613) | (90,674) | 22,668 | 27,886 | 557 | 2,730,195
BID INVEST | - | - | - | 950,000 | (7,125) | - | - | - | - | 1,638 | - | - | 944,513
Leases (Concession Agreements, Program Contracts and Contract Assets) | 459,671 | - | - | - | - | - | - | (51,431) | (30,928) | 51,431 | - | - | 428,743
Leases (Others) | 74,453 | - | 28,549 | - | - | - | - | (9,108) | (56,571) | 8,553 | - | - | 45,876
Other | 9,898 | - | - | 7,250 | - | - | - | (671) | (1,962) | 651 | 31 | - | 15,197
TOTAL IN LOCAL CURRENCY | 6,885,911 | 2,807,371 | 28,549 | 4,752,889 | (59,453) | 86,939 | - | (419,082) | (919,040) | 406,826 | 128,869 | 10,983 | 13,710,762
FOREIGN CURRENCY |  |  |  |  |  |  |  |  |  |  |  |  |
BIDs | 2,316,190 | (2,807,371) | - | 52,141 | (6,635) | 845,246 | 48,246 | (45,010) | (121,088) | 10,490 | 24,695 | 398 | 317,302
BIRD | 357,880 | - | - | - | (2,029) | 102,029 | 1,217 | (7,572) | (31,216) | 5,659 | 752 | 140 | 426,860
Eurobonds | 1,413,956 | - | - | - | - | 457,931 | - | (104,170) | (1,868,676) | 90,941 | 9,195 | 823 | -
JICA | 2,106,908 | - | - | 40,830 | (117) | 715,956 | 17,841 | (43,758) | (200,597) | 40,172 | 6,897 | 189 | 2,684,321
BID 1983AB | 163,864 | - | - | - | (152) | 59,078 | - | (7,033) | (103,482) | 5,843 | 618 | 643 | 119,379
TOTAL IN FOREIGN CURRENCY | 6,358,798 | (2,807,371) | - | 92,971 | (8,933) | 2,180,240 | 67,304 | (207,543) | (2,325,059) | 153,105 | 42,157 | 2,193 | 3,547,862
TOTAL | 13,244,709 | - | 28,549 | 4,845,860 | (68,386) | 2,267,179 | 67,304 | (626,625) | (3,244,099) | 559,931 | 171,026 | 13,176 | 17,258,624
| December 31, 2018 | Addition as per IFRS 16 | Funding | Borrowing costs | Monetary variation and exchange rate changes | Inflation adjustment / exchange rate changes - Capitalized | Interest paid | Amortization | Accrued interest | Provision for interest and fees - Capitalized | Amortization of borrowing costs | December 31, 2019
LOCAL CURRENCY |  |  |  |  |  |  |  |  |  |  |  |
Debentures | 3,486,861 | - | 1,266,755 | (11,814) | 42,692 | - | (234,307) | (1,055,623) | 195,586 | 17,233 | 3,845 | 3,711,228
Brazilian Federal Savings Bank | 1,345,684 | - | 162,767 | - | - | - | (109,128) | (79,404) | 74,421 | 34,910 | - | 1,429,250
BNDES | 1,072,605 | - | 256,981 | (628) | 2,082 | 826 | (83,419) | (131,026) | 60,644 | 23,112 | 234 | 1,201,411
Leases (Concession Agreements, Program Contracts and Contract Assets) | 568,666 | - | - | - | 1,765 | 3,761 | (47,663) | (123,880) | 49,160 | 7,862 | - | 459,671
Leases (Others) (*) | - | 113,233 | - | - | - | - | (1,141) | (42,646) | 5,007 | - | - | 74,453
Other | 9,571 | - | 1,683 | - | 28 | - | (655) | (1,383) | 652 | 2 | - | 9,898
TOTAL IN LOCAL CURRENCY | 6,483,387 | 113,233 | 1,688,186 | (12,442) | 46,567 | 4,587 | (476,313) | (1,433,962) | 385,470 | 83,119 | 4,079 | 6,885,911
FOREIGN CURRENCY |  |  |  |  |  |  |  |  |  |  |  |
BID | 2,399,985 | - | - | - | 40,594 | 49,387 | (83,602) | (171,892) | 26,332 | 54,431 | 955 | 2,316,190
BIRD | 356,420 | - | 2,540 | (2,540) | 12,575 | 1,657 | (10,627) | (12,273) | 8,548 | 1,561 | 19 | 357,880
Deutsche Bank | 292,872 | - | - | - | 13,255 | - | (18,562) | (303,866) | 12,929 | 1,240 | 2,132 | -
Eurobonds | 1,358,412 | - | - | - | 54,565 | - | (102,883) | - | 94,095 | 8,943 | 824 | 1,413,956
JICA | 2,036,128 | - | 117,861 | (112) | 104,027 | 3,675 | (35,001) | (155,064) | 32,194 | 3,013 | 187 | 2,106,908
BID 1983AB | 225,592 | - | - | (105) | 8,943 | - | (10,338) | (71,141) | 9,111 | 870 | 932 | 163,864
TOTAL IN FOREIGN CURRENCY | 6,669,409 | - | 120,401 | (2,757) | 233,959 | 54,719 | (261,013) | (714,236) | 183,209 | 70,058 | 5,049 | 6,358,798
Overall Total | 13,152,796 | 113,233 | 1,808,587 | (15,199) | 280,526 | 59,306 | (737,326) | (2,148,198) | 568,679 | 153,177 | 9,128 | 13,244,709
(*) The amount presented in Funding for Leasing (IFRS 16) includes R$ 64,955 referring to the initial adoption of the standard on January 1, 2019.
| December 31, 2017 | Funding | Borrowings costs | Monetary variation and exchange rate changes | Inflation adjustment / update incorporated interest - Capitalized | Interest and fees paid | Amortization | Accrued interest | Interest and fees – Capitalized (*) | Borrowings costs - expenses | December 31, 2018
LOCAL CURRENCY |  |  |  |  |  |  |  |  |  |  |
Debentures | 3,576,842 | 750,000 | (3,021) | 62,676 | - | (259,175) | (905,080) | 226,810 | 34,409 | 3,400 | 3,486,861
Brazilian Federal Savings Bank | 1,236,674 | 194,244 | - | - | - | (102,772) | (85,515) | 75,668 | 27,385 | - | 1,345,684
BNDES | 1,042,036 | 131,000 | - | 3,438 | 4,001 | (90,397) | (102,314) | 28,909 | 55,725 | 207 | 1,072,605
Leases | 561,616 | - | - | - | 6,366 | (38,196) | (17,427) | 40,290 | 16,017 | - | 568,666
Other | 10,977 | - | - | 69 | - | (772) | (1,470) | 763 | 4 | - | 9,571
TOTAL IN LOCAL CURRENCY | 6,428,145 | 1,075,244 | (3,021) | 66,183 | 10,367 | (491,312) | (1,111,806) | 372,440 | 133,540 | 3,607 | 6,483,387
FOREIGN CURRENCY |  |  |  |  |  |  |  |  |  |  |
BID | 1,743,257 | 484,690 | (2,365) | 237,433 | 53,208 | (55,391) | (130,520) | 26,910 | 41,878 | 885 | 2,399,985
BIRD | 303,278 | - | - | 48,279 | 3,462 | (7,607) | - | 6,945 | 2,044 | 19 | 356,420
Deutsche Bank | 496,726 | - | - | 62,918 | - | (35,207) | (268,508) | 28,862 | 4,454 | 3,627 | 292,872
Eurobonds | 1,158,642 | - | - | 198,380 | - | (97,952) | - | 85,072 | 13,448 | 822 | 1,358,412
JICA | 1,700,448 | 80,196 | (191) | 329,638 | 6,787 | (33,519) | (82,608) | 33,992 | 1,209 | 176 | 2,036,128
BID 1983AB | 270,470 | - | - | 39,241 | - | (11,060) | (85,306) | 9,681 | 1,488 | 1,078 | 225,592
TOTAL IN FOREIGN CURRENCY | 5,672,821 | 564,886 | (2,556) | 915,889 | 63,457 | (240,736) | (566,942) | 191,462 | 64,521 | 6,607 | 6,669,409
Overall Total | 12,100,966 | 1,640,130 | (5,577) | 982,072 | 73,824 | (732,048) | (1,678,748) | 563,902 | 198,061 | 10,214 | 13,152,796
(*) amount related to accrued interest which as part of the contract assets. (a) Main events in 2020
| (i) | Funding
On January 2020, the Company amortized the last installment of series 2 of the 17th issue debentures, totaling R$ 291.8 million. On April 2020, the 25th issue debentures was carried out, in the amount of R$ 1,450,000, as follows:
| Value | Maturity | Remuneration
Single series | R$ 1,450,000 | 10/2021 | CDI + 3.3 p.a.
On July 2020, the 26th issue debentures was carried out, in the amount of R$ 1,045,000, as follows:
| Value | Maturity | Remuneration
Series 1 | R$ 600,000 | 07/2027 | IPCA+ 4.65% p.a.
Series 2 | R$ 445,000 | 07/2030 | IPCA+ 4.95% p.a.
On December 2020, the 27th issue debentures was carried out, in the amount of R$ 1,000,000, as follows:
| Value | Maturity | Remuneration
Series 1 | R$ 300,000 | 12/2023 | CDI+ 1,60 p.a.
Series 2 | R$ 400,000 | 12/2025 | CDI+ 1,80 p.a.
Series 3 | R$ 300,000 | 12/2027 | CDI+ 2,25 p.a.
| • | The covenants agreed for the 25th, 26th and 27th issue debentures are:
Calculated on a quarterly basis, when disclosing the interim financial information or annual financial statements: - Net debt/adjusted EBITDA lower than or equal to 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 1.5; - Disposal of operating assets, termination of license, loss of concession or loss of the Issuer’s capacity to execute and operate public sanitation services in areas of the São Paulo State which, individually or jointly during the term of the agreement, result in a reduction of the Issuer’s net sales and/or service revenue of more than twenty- five percent (25%). The above limit will be calculated on a quarterly basis, taking into consideration the Issuer’s net operating revenues during the twelve (12) months prior to the end of each quarter and using the financial information disclosed by the Issuer. The failure to comply with the covenants for at least two consecutive quarters, or for two non-consecutive quarters within a twelve-month period, will cause the early termination of the agreement (in which case the 30-day cure period does not apply). The contracts have a cross acceleration clause, i.e. the early maturity of any of the Company’s debts, in and individual or aggregate amount equal to or higher than R$ 155 million, for the 25th and 26th issues and R$ 160 million for the 27th issue, adjusted by the IPCA inflation index as of the issue date, constitutes a default event and may result in the early maturity of the obligations arising from the Debentures.
| (ii) | BID
On May 2020, the company exchanged foreign currency for local currency related to BID 2202 contract, in the amount of R$ 2,810,907 (US$ 494,617 thousand) using the exchange rate of R$ 5.683 to compose the debt balance. The interest rate is CDI + 0.86% p.a., with semi-annual payment of principal and interest, beginning on September 3, 2020. On December 2020, BID INVEST was raised, in the amount of R$ 950,000, as follows:
| Value | Maturity | Remuneration
Tranche – Medium Term | R$ 442,000 | 08/2029 | CDI+ 1.90 p.a.
Tranche - Long Term | R$ 508,000 | 08/2034 | CDI+ 2.70 p.a.
| • | The covenants agreed for the BID INVEST are:
- Net debt/adjusted EBITDA lower than or equal to 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 2.35; The Company should maintain for two (2) consecutive quarters or not, for any four (4) consecutive quarters.
| (iii) | Eurobonds
As of September 30, 2020, the early full amortization of the loan, in the amount of R$ 1,910,124 (US$ 357,763 thousand), referring to principal plus charges, initially maturing in December 2020, was carried out. (b) Leases The Company has work service agreements which includes specific assets under lease terms. During the construction period, works are capitalized to intangible assets in progress and the lease amount is recorded at the same proportion. After startup, the lease payment period starts (240 monthly installments), whose amount is periodically restated by contracted price index. The amounts payable for the right of use of assets are also recorded in this line (Note 15 (j)). (c) Financial commitments - Covenants The table below shows the more restrictive covenants ratios as of December 31, 2020.
| Restrictive Ratios
Adjusted EBITDA / Adjusted Financial Expenses | Equal to or higher than 2.80
Adjusted Net Debt / Adjusted EBITDA | Equal to or lower than 3.80
Adjusted Total Debt / Adjusted EBITDA | Lower than 3.65
Other Onerous Debt(1) / Adjusted EBITDA | Equal to or lower than 1.30
Adjusted Current Ratio | Higher than 1.00
EBITDA / Paid Financial Expenses | Equal to or higher than 2.35
Net Debt / Adjusted EBITDA | Equal to or lower than 3.50
(1) “Other Onerous Debts” correspond to the sum of pension obligations and health care plan, installment payment of tax debts and installment payment of debts with the electricity supplier.
As of December 31, 2020 and 2019, the Company met the financial debt covenants as set forth by its borrowing and financing agreements. (d) Borrowings and financing – Credit Limits
Agent |  | December 31, 2020
|  | (in millions of reais (*))
Brazilian Federal Savings Bank |  | 1,485
Brazilian Development Bank – BNDES |  | 708
Japan International Cooperation Agency – JICA |  | 85
Inter-American Development Bank – BID |  | 1,506
International Bank for Reconstruction and Development - IBRD |  | 1,296
Other |  | 51
TOTAL |  | 5,131
(*) Brazilian Central Bank’s exchange sell rate as of December 30, 2020 (US$ 1.00 = R$ 5.1967; ¥ 1.00 = R$ 0.05043). Financing resources contracted have specific purposes, which have been released for the execution of their respective investments, according to the progress of the works.

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