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LOANS, FINANCING AND DEBENTURES

6 Months Ended

Jun. 30, 2023

LOANS, FINANCING AND DEBENTURES

LOANS, FINANCING AND DEBENTURES

18.LOANS, FINANCING AND DEBENTURES

18.1.Breakdown by type

Current

Non-current

Total

Average

annual

interest rate -

June 30,

December 31,

June 30,

December 31,

June 30,

December 31,

Type

Interest rate

2023

2022

2023

2022

2023

2022

In foreign currency

BNDES

UMBNDES

5.4

4,174

11,207

4,174

11,207

Bonds

Fixed

5.0

832,242

907,059

39,928,218

43,218,286

40,760,460

44,125,345

Export credits (“export prepayments”)

LIBOR/Fixed

6.2

1,719,005

156,156

14,597,783

16,779,064

16,316,788

16,935,220

Assets financing

SOFR

3.6

44,320

26,755

177,526

113,217

221,846

139,972

IFC - International Finance Corporation

SOFR

5.9

1,845

2,850,036

2,851,881

Others

10,647

5,980

10,647

5,980

2,612,233

1,107,157

57,553,563

60,110,567

60,165,796

61,217,724

In local currency

BNDES

TJLP

8.4

55,034

69,495

221,302

246,004

276,336

315,499

BNDES

TLP

10.7

53,908

41,640

2,346,197

1,775,991

2,400,105

1,817,631

BNDES

Fixed

4.5

8,563

18,666

2,004

4,011

10,567

22,677

BNDES

SELIC

13.3

67,951

67,115

836,034

814,320

903,985

881,435

CRA (“Agribusiness Receivables Certificates”)

CDI/IPCA

9.6

1,269,990

1,829,966

1,269,990

1,829,966

NCE (“Export credit notes”)

CDI

11.0

78,548

76,463

1,378,261

1,277,616

1,456,809

1,354,079

NCR (“Rural producer certificates”)

CDI

10.7

12,981

13,144

274,265

274,127

287,246

287,271

Export credits (“export prepayments”)

Fixed

8.1

1,339,409

77,694

1,315,813

1,339,409

1,393,507

Debentures

CDI

11.7

33,926

33,689

6,388,162

5,421,113

6,422,088

5,454,802

2,920,310

2,227,872

11,446,225

11,128,995

14,366,535

13,356,867

5,532,543

3,335,029

68,999,788

71,239,562

74,532,331

74,574,591

Interest on financing

1,141,837

1,238,623

1,141,837

1,238,623

Non-current funding

4,390,706

2,096,406

68,999,788

71,239,562

73,390,494

73,335,968

5,532,543

3,335,029

68,999,788

71,239,562

74,532,331

74,574,591

18.2.Breakdown by maturity – non - current

2029

2024

2025

2026

2027

2028

onwards

Total

In foreign currency

Bonds

5,970

1,640,973

2,495,454

3,350,524

2,406,200

30,029,097

39,928,218

Export credits (“export prepayments”)

894,202

5,254,429

4,656,085

3,793,067

14,597,783

Assets financing

22,774

46,987

48,860

48,123

10,782

177,526

IFC - International Finance Corporation

187,413

883,520

1,779,103

2,850,036

922,946

6,942,389

7,200,399

7,379,127

3,300,502

31,808,200

57,553,563

In local currency

BNDES – TJLP

22,052

98,809

85,571

7,090

3,590

4,190

221,302

BNDES – TLP

21,408

60,963

80,573

141,272

138,439

1,903,542

2,346,197

BNDES – Fixed

2,004

BNDES – SELIC

28,720

217,090

217,135

28,057

28,103

316,929

836,034

NCE (“Export credit notes”)

640,800

637,460

25,000

50,001

1,378,261

NCR (“Rural producer certificates”)

137,500

136,765

274,265

Debentures

2,340,550

2,333,776

748,306

965,530

6,388,162

74,184

3,495,712

3,491,280

201,419

943,438

3,240,192

11,446,225

997,130

10,438,101

10,691,679

7,580,546

4,243,940

35,048,392

68,999,788

18.3.Roll-forward of loans, financing and debentures


	June 30,	December 31,
	2023	2022
Opening balance	74,574,591	79,628,629
Fundraising, net of issuance costs	5,276,816	1,335,715
Interest accrued	2,309,587	4,007,737
Monetary and exchange rate variations, net	(4,543,048)	(3,949,020)
Settlement of principal	(765,533)	(2,517,934)
Settlement of interest	(2,352,484)	(4,019,072)
Amortization of fundraising costs	32,402	69,649
Others (fair value adjustments to on business combinations)		18,887
Closing balance	74,532,331	74,574,591

18.4.Breakdown by currency


	June 30,	December 31,
	2023	2022
Brazilian Reais	14,355,349	13,347,244
U.S. Dollars	60,172,808	61,216,140
Currency basket	4,174	11,207
	74,532,331	74,574,591

18.5.Fundraising costs

The fundraising costs are amortized based on the terms of agreements and the effective interest rate.


			Balance to be amortized
			June 30,	December 31,
Type	Cost	Amortization	2023	2022
Bonds	434,970	255,182	179,788	210,822
CRA and NCE	125,222	119,769	5,453	10,838
Export credits (“export prepayments”)	191,710	132,897	58,813	75,520
Debentures	59,216	16,279	42,937	9,984
BNDES	63,588	52,692	10,896	12,016
IFC - International Finance Corporation	41,943	459	41,484
Others	18,147	17,412	735	873
	934,796	594,690	340,106	320,053

18.6.Guarantees

Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment are offered as collateral by the Company, as disclosed in Note 15.1.

The Company does not have contracts with restrictive financial clauses (financial covenants) which must be complied with.

18.7.Relevant transactions entered into during the period

18.7.1.BNDES

On June 27, 2023, the Company raised R$500,000 from BNDES indexed to the Long-Term Rate (“TLP”), plus a fixed interest rate of 5.23% p.a., with a principal grace period of 7 (seven) years and maturity in December 2037. The funds were allocated to projects in the forestry sector.

18.7.2.International Finance Corporation (“IFC”)

On December 22, 2022, the Company obtained a new credit line (“A&B Loan”) to be financed by the International Finance Corporation (IFC) and a syndicate of commercial banks, in a total amount of US$600,000 (equivalent to R$2,891,520).

The financing consists of the following parts: (i) “A-loan” in the amount of US$250,000 (equivalent to R$1,204,800) with IFC’s own resources, at a cost of Term SOFR + 1.80% p.a. and a total term of eight years, with a principal grace period of six years; and (ii) “B-loan,” a syndicated loan in the amount of US$350,000 (equivalent to R$1,686,720) at a cost of Term SOFR + 1.60% p.a. and a total term of seven years, with a principal grace period of five years.

This credit line was fully utilized by June 30, 2023.

The credit operation has sustainability performance indicators (KPIs) associated with goals for: (a) reducing greenhouse gas (GHG) emissions intensity, and (b) increasing the representation of women in leadership positions within the Company. The funds will be allocated to the Cerrado Project.

18.7.3.Advance of exchange contract (“ACC”)

On May 19, 2023, the Company raised US$100,000 (equivalent to R$481,920) from BNP Paribas at a fixed rate of 6.00%, with maturity in May 2024.

On June 21, 2023, the Company raised US$35,000 (equivalent to R$168,672) from BNP Paribas at a fixed rate of 6.52%, with maturity in June 2024.

18.7.4.Debenture

On June 29, 2023, the Company issued debenture in the amount of R$1,000,000.

The debenture consists of two parts: (i) an amount of R$500,000 at a cost of IPCA + 6.0188% p.a. and a total term of seven years, with a single maturity in 2030; and (ii) an amount of R$500,000 at a cost of IPCA + 6.2477% p.a. and a total term of ten years, with a single maturity in 2033.

18.8.Significant transactions settled during the period

On June 22, 2023, the Company settled a CRA contract in the amount of R$685,239 (principal and interest), with an original maturity in June 2023 and a cost of IPCA + 5.9844%.