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LOANS, FINANCING AND DEBENTURES | 12 Months Ended
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Dec. 31, 2020
LOANS, FINANCING AND DEBENTURES |
LOANS, FINANCING AND DEBENTURES | 18.LOANS, FINANCING AND DEBENTURES 18.1.Breakdown by type
|  |  |  | Average |  | Current |  | Non-current |  | Total
|  |  |  | annual |  |  |  |  |  |
|  |  |  | interest rate - |  | December 31, |  | December 31, |  | December 31, |  | December 31, |  | December 31, |  | December 31,
Type |  | Interest rate |  | % |  | 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
In foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BNDES |  | UMBNDES |  | 4.84 |  | 2,506 |  | 26,307 |  | 24,486 |  | 27,620 |  | 26,992 |  | 53,927
Bonds (1) |  | Fixed |  | 5.33 |  | 779,046 |  | 640,177 |  | 37,232,554 |  | 27,375,673 |  | 38,011,600 |  | 28,015,850
Export credits (ACC - pre-payment) |  | LIBOR/Fixed |  | 1.64 |  | 718,623 |  | 1,994,868 |  | 19,400,208 |  | 15,431,478 |  | 20,118,831 |  | 17,426,346
Others |  |  |  |  |  | 2,516 |  | 3,481 |  |  |  |  |  | 2,516 |  | 3,481
|  |  |  |  |  | 1,502,691 |  | 2,664,833 |  | 56,657,248 |  | 42,834,771 |  | 58,159,939 |  | 45,499,604
In local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BNDES |  | TJLP |  | 6.77 |  | 276,441 |  | 283,658 |  | 1,254,222 |  | 1,517,649 |  | 1,530,663 |  | 1,801,307
BNDES |  | TLP |  | 10.04 |  | 25,535 |  | 18,404 |  | 522,367 |  | 441,233 |  | 547,902 |  | 459,637
BNDES |  | Fixed |  | 4.94 |  | 29,115 |  | 39,325 |  | 47,177 |  | 77,333 |  | 76,292 |  | 116,658
BNDES |  | SELIC |  | 5.50 |  | 98,531 |  | 78,458 |  | 1,068,959 |  | 718,017 |  | 1,167,490 |  | 796,475
FINAME |  | TJLP/Fixed |  |  |  |  |  | 4,781 |  |  |  | 9,564 |  |  |  | 14,345
BNB |  | Fixed |  |  |  |  |  | 37,815 |  |  |  | 156,904 |  |  |  | 194,719
CRA (“Agribusiness Receivables Certificates”) |  | CDI/IPCA |  | 7.59 |  | 32,156 |  | 2,860,938 |  | 3,025,527 |  | 2,952,451 |  | 3,057,683 |  | 5,813,389
NCE (Export credit note) |  | CDI |  | 5.52 |  | 15,184 |  | 131,914 |  | 1,275,045 |  | 1,270,065 |  | 1,290,229 |  | 1,401,979
Rural producer Certificate |  | CDI |  | 7.81 |  | 2,738 |  | 5,840 |  | 273,578 |  | 273,303 |  | 276,316 |  | 279,143
Export credits (“Pre payment”) |  | Fixed |  | 7.62 |  | 77,570 |  | 77,694 |  | 1,313,661 |  | 1,312,586 |  | 1,391,231 |  | 1,390,280
FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP |  | Fixed |  |  |  |  |  | 76,596 |  |  |  | 475,905 |  |  |  | 552,501
Debentures |  | CDI |  | 6.12 |  | 7,590 |  | 9,997 |  | 5,415,061 |  | 5,412,035 |  | 5,422,651 |  | 5,422,032
Others (Revolving Cost, Working capital and Industrial Development Fund (“FDI”) and fair value adjustment on business combination |  | Fixed |  | 0.40 |  | (24,165) |  | (62,302) |  | 3,651 |  | 4,559 |  | (20,514) |  | (57,743)
|  |  |  |  |  | 540,695 |  | 3,563,118 |  | 14,199,248 |  | 14,621,604 |  | 14,739,943 |  | 18,184,722
|  |  |  |  |  | 2,043,386 |  | 6,227,951 |  | 70,856,496 |  | 57,456,375 |  | 72,899,882 |  | 63,684,326
Interest on financing |  |  |  |  |  | 935,010 |  | 886,886 |  |  |  | 136,799 |  | 935,010 |  | 1,023,685
Non-current funding |  |  |  |  |  | 1,108,376 |  | 5,341,065 |  | 70,856,496 |  | 57,319,576 |  | 71,964,872 |  | 62,660,641
|  |  |  |  |  | 2,043,386 |  | 6,227,951 |  | 70,856,496 |  | 57,456,375 |  | 72,899,882 |  | 63,684,326
18.2.Rollforward in loans, financing and debentures
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Beginning balance |  | 63,684,326 |  | 35,737,509
Amounts from the business combination |  |  |  | 20,667,096
Reclassification - accounts payable from lease operations |  |  |  | (18,225)
Fundraising |  | 14,761,796 |  | 18,993,837
Interest accrued |  | 3,286,254 |  | 3,362,250
Premium with repurchase of bonds |  | 391,390 |  |
Exchange rate variation, net |  | 13,365,471 |  | 1,781,562
Settlement of principal |  | (19,092,810) |  | (13,994,708)
Settlement of interest |  | (3,244,949) |  | (2,977,957)
Settlement of premium with repurchase of bonds |  | (378,381) |  |
Amortization of fundraising costs |  | 87,959 |  | 185,807
Other |  | 38,826 |  | (52,845)
Ending balance |  | 72,899,882 |  | 63,684,326
18.3.Breakdown by maturity – non current
|  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 onwards |  | Total
In foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |
BNDES - Currency basket |  | 13,356 |  | 11,130 |  |  |  |  |  |  |  |  |  | 24,486
Bonds |  |  |  |  |  | 1,823,773 |  | 1,741,909 |  | 2,707,642 |  | 30,959,230 |  | 37,232,554
Export credits (ACC pre-payment) |  | 1,576,020 |  | 9,549,933 |  | 4,555,079 |  | 3,250,602 |  | 468,574 |  |  |  | 19,400,208
|  | 1,589,376 |  | 9,561,063 |  | 6,378,852 |  | 4,992,511 |  | 3,176,216 |  | 30,959,230 |  | 56,657,248
In local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |
BNDES – TJLP |  | 269,029 |  | 268,272 |  | 240,281 |  | 292,870 |  | 169,102 |  | 14,668 |  | 1,254,222
BNDES – TLP |  | 18,866 |  | 18,866 |  | 18,866 |  | 17,618 |  | 21,161 |  | 426,990 |  | 522,367
BNDES – Fixed |  | 24,558 |  | 18,606 |  | 4,013 |  |  |  |  |  |  |  | 47,177
BNDES – Selic |  | 97,511 |  | 121,202 |  | 113,061 |  | 238,538 |  | 200,697 |  | 297,950 |  | 1,068,959
CRA (“Agribusiness Receivables Certificates”) |  | 1,512,680 |  | 1,512,847 |  |  |  |  |  |  |  |  |  | 3,025,527
Export credit note |  |  |  |  |  |  |  | 640,800 |  | 634,245 |  |  |  | 1,275,045
Rural producer certificate |  |  |  |  |  |  |  | 137,500 |  | 136,078 |  |  |  | 273,578
Export credits (“Pre payment”) |  |  |  |  |  | 1,313,661 |  |  |  |  |  |  |  | 1,313,661
Debentures |  |  |  |  |  |  |  | 2,340,550 |  | 2,327,011 |  | 747,500 |  | 5,415,061
Others (Revolving costs, working capital, FIDC and FDI) |  | 3,651 |  |  |  |  |  |  |  |  |  |  |  | 3,651
|  | 1,926,295 |  | 1,939,793 |  | 1,689,882 |  | 3,667,876 |  | 3,488,294 |  | 1,487,108 |  | 14,199,248
|  | 3,515,671 |  | 11,500,856 |  | 8,068,734 |  | 8,660,387 |  | 6,664,510 |  | 32,446,338 |  | 70,856,496
18.4.Breakdown by currency
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Brazilian Reais |  | 14,727,803 |  | 18,170,261
U.S. Dollar |  | 58,145,087 |  | 45,460,138
Currency basket |  | 26,992 |  | 53,927
|  | 72,899,882 |  | 63,684,326
18.5.Fundraising costs The fundraising costs are amortized based on terms agreements and effective interest rate.
|  |  |  |  |  | Balance to be amortized
|  |  |  |  |  | December 31, |  | December 31,
Type |  | Cost |  | Amortization |  | 2020 |  | 2019
Bonds |  | 390,104 |  | 151,536 |  | 238,568 |  | 201,467
CRA and NCE |  | 125,222 |  | 92,848 |  | 32,374 |  | 47,443
Export credits (ACC pre-payment) |  | 102,769 |  | 46,741 |  | 56,028 |  | 40,382
Debentures |  | 24,467 |  | 8,428 |  | 16,039 |  | 19,065
BNDES (“IOF”) (1) |  | 62,658 |  | 22,047 |  | 40,611 |  | 38,447
Others |  | 18,147 |  | 16,725 |  | 1,422 |  | 4,590
|  | 723,367 |  | 338,325 |  | 385,042 |  | 351,394
| 1) |  | Tax on Financial Operations
18.6.Relevant transactions entered into the year 18.6.1.Export Prepayment Agreements (“EPP”) On February 14, 2020, Suzano, through its wholly-owned subsidiaries Suzano Pulp and Paper Europe S.A., Suzano Austria GmbH and Fibria Overseas Finance Ltd., entered into a syndicated export prepayment agreement in the amount of US$850,000 (equivalent, on the transaction date, to R$3,672,259), with a term of six years and maturity in February 2026, grace period of 4 years, quarterly interest payments of 1.15% p.a. plus LIBOR 3M. This transaction is fully and unconditionally guaranteed by Suzano S.A. On December 17, 2020, the Company, through its wholly-owned subsidiary Suzano International Trade GmbH, signed in a bilateral export prepayment contract with Banco Santander, in the amount of US$100,000 (equivalent on the transaction date to R$517,402) with a term of one year and with an interest rate of 1.3825% p.a. On December 23, 2020, the Company, through its wholly-owned subsidiary Suzano Pulp and Paper Europe SA, signed in a bilateral export prepayment contract with the bank Rabobank in the amount of US$140,000 (equivalent on the transaction date to R$709,444) with a term of one year and an interest rate of 1.35% p.a. All the above operations are fully guaranteed by Suzano S.A. 18.6.2.Revolving credit facility On April 2, 2020, the Company through its wholly-owned subsidiary Suzano Pulp and Paper Europe S.A, disbursement of US$500,000 (equivalent, on the transaction date, to R$2,638,221) of its revolving credit facility maintained with certain financial institutions with quarterly payments of 1.30% plus quarterly LIBOR and maturity in February 2024. 18.6.3.Brazilian National Bank for Economic and Social Development (BNDES) On June 29, 2020, the Company raised with BNDES the amount of R$400,000 indexed to the Selic interest rate, plus fixed interest of 1.96% p.a., with an average term of 124 months, maturing in February 2040. This funding is in line with the company's strategy of lengthening of the average of its obligations and efficiency in servicing its debt (cost of debt). On December 22, 2020, the Company raised with BNDES the amount of R$131,774, of which R$ 100,000 referring to a second release of the contract raised above and R$31,774 indexed to the long-term interest rate ("TLP"), plus fixed interest of 1.77% p.a., with an average term of 121 months, maturing in November 2034. 18.6.4.Issuance of Sustainability-linked Notes 2031 (“Notes 2031”) On September 14, 2020, the Company, through its wholly-owned subsidiary Suzano Austria GmbH ("Suzano Austria"), issued Senior Notes totaling US$ 750,000 (R$ equivalent to R$3,973,831 on the transaction date) with yield of 3.950% per annum, with a coupon of 3.750% p.a., to be paid semi-annually as of January 15, 2021 and with the principal amount due on January 15, 2031. The Notes have environmental performance indicators (“KPIs”) associated with a goal of reducing GHG emissions by the Company by 2025, evidencing Suzano’s commitment as part of the solution to the global climate crisis and in convergence to the implementation of its Long Term Goal. Under the terms of the Notes, if the Company does not satisfy the Sustainability Performance Target and provide confirmation thereof to the Trustee together with a related confirmation by the External Verifier at least 30 days prior to July 16, 2026, the interest rate payable on the Notes will be increased by 25 basis points from July 16, 2026 to the Maturity Date. Additionally, pursuant to the Sustainability-Linked Securities Framework, the Company has committed to publish annually a Sustainability Report, together with a verification assurance report issued by the External Verifier. Thus, the new debt securities are characterized as sustainability-linked bonds, according to the principles promulgated by the Capital Markets Association. 18.6.5.Sustainability-Linked Notes 2031 (“Notes 2031”) On November 19, 2020, the Company, through its wholly-owned subsidiary Suzano Austria GmbH ("Suzano Austria"), made an additional issue of debt securities under Senior Notes 2031, in the principal amount of US$500,000 (equivalent to R$2,666,484 on the transaction date) coupon of 3.750% p.a. (yield to maturity of 3.100% p.a.), to be paid semi-annually as of January 15, 2021 and with the principal amount due on January 15, 2031. 18.7.Relevant transactions settled in the year 18.7.1.Export Prepayment Agreements (“EPP”) On February 14, 2020, Suzano, through its wholly-owned subsidiary Suzano Pulp and Paper Europe S.A., voluntarily prepaid the export prepayment agreement in the amount of U.S.$755,864 (equivalent, on the transaction date, to R$3,240,229), with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in February 2023. On December 7, 2020, the Company, through its subsidiary Suzano Pulp and Paper Europe S.A., partially settled the export prepayment agreement in the total amount of US$300,000 (equivalent on the transaction date to R$1,355,362), with original maturity in December 2023 and quarterly interest rate of 1.15% p.a. plus quarterly LIBOR. 18.7.2.Make–whole Senior Notes (“Notes 2021”) On March 31, 2020, the Company through its wholly-owned subsidiary Suzano Trading Ltd., redeem all of the outstanding of Senior Notes 2021 in the total amount of US$199,864 (equivalent, on the transaction date, to R$1,039,032) considering redemption price of 104.287% plus interest proportional to the period. 18.7.3.Agribusiness Receivables Certificates (“CRA”) On April 13, 2020, the Company disbursed the total amount of R$612,779, from this amount R$600,000 was related to the payment of principal and R$12,779 of interest of the Agribusiness Receivables Certificate issued in April 2016, with interest of 98% of the CDI, this payment was made due to the normal maturity of the CRA. On June 22, 2020, the single installment of the CRA principal of R$880,155, issued in June 2016, with 97% interest on the CDI, matured. The company disbursed R$895,655 as principal (R$880,155) and interest (R$15,500). On November 14, 2020, the single installment of the CRA principal in the amount of R$1,000,000, issued in November 2016, with interest of 96% of the CDI, matured. The Company disbursed the amount of R$1,009,068, considering the last installment of interest on the operation. 18.7.4.Revolving credit facility On August 13, 2020, in accordance with the announced to the market made on March 30, 2020, the Company announced the early return of the revolving credit facility in the amount of US$ 500,000 (equivalent to R$2,638,221 on the date of the transaction) hired on April 1, 2020, at LIBOR + 1.30% p.a., with an average term of 47 months and final maturity in February 2024. The settlement was on August 20, 2020 in the amount of R$ 2,848,097 (principal and interest) and, once realized, these funds became fully available as a source of additional liquidity for the Company, if necessary. 18.7.5.Notes Tender Offer (“Notes 2024, 2025 e 2026”) The proceeds obtained from the issuance of Notes 2031, detailed in note 18.6.4., were used for the partial repurchase of Senior Notes issued by Fibria Overseas Finance Ltd and Suzano Austria GmbH, Suzano's wholly-owned subsidiaries, as follows (i) partial settlement of US$247,207 (equivalent to R$1,303,473) at a price of 110.8% of the issue value plus the proportional interest of Senior Notes issued by Fibria Overseas currently in circulation with a coupon (interest) of 5.25% p.a. and maturity in May 2024 ("Notes 2024"); (ii) partial settlement of US$260,348 (equivalent to R$1,372,763) at the price of 106.6% of the issue value plus the proportional interest of Senior Notes issued by Fibria Overseas currently in circulation with a coupon (interest) of 4.00% p.a. and maturity in January 2025 ("Notes 2025"); and (iii) partial settlement of US$183,419 (equivalent to R$967,138 on the payment date) at a price of 115.2% of the issue value plus the proportional interest of Senior Notes issued by Suzano Austria, with a coupon (interest) of 5.75% p.a. and maturity in July 2026 ("Notes 2026"). In the execution of the partial repurchase, premium payments were made in the amounts of US$26,698 (equivalent to R$140,775 on the transaction date), US$17,183 (equivalent to R$90,602 on the transaction date) and US$25,506 (equivalent to R$134,488 on the transaction date) to the bondholders of Notes 2024, 2025 and 2026, respectively, recognized in the financial result. In the partial repurchase of Notes 2026, the Company determined that there was no substantial change under of the existing bonds, therefore, this transaction was recorded as a modification of the financial liability. The amount of US$2,374 (equivalent R$ 12,518 on the transaction date) paid for the exchange will be amortized over the term of Notes 2031, in accordance with the requirements of IFRS 9. The settlement of the process of repurchase occurred on September 15, 2020. 18.7.6.Central West Development Fund (“FDCO”) On December 28, 2020, the Company prepaid the financing credit agreement raised with the Midwest development Fund in the amount of R$512,012, with original maturity in December 2027 and semiannual interest rate of 8.00% p.a. 18.8.Guarantees Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment are offered by the Company, as disclosed in Note 15.1. The Company does not have contracts with restrictive financial clauses (financial covenants) to be complied with.

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