XML 130 R33.htm IDEA: XBRL DOCUMENT v3.24.1
BORROWINGS
 12 Months Ended
Dec. 31, 2023
Borrowings [abstract]  
BORROWINGS BORROWINGS
As of December 31,
20232022
(i) Non-current
Bank borrowings9,353 534,352 
Bonds747,260 — 
Debentures454,136 — 
Less: debt issue costs(4,788)(1,651)
1,205,961 532,701 
(ii) Current
Bank borrowings915,989 500,091 
Bonds23,485 — 
Debentures4,220 — 
Less: debt issue costs(3,241)(927)
940,453 499,164 
Total Financial Debt2,146,414 1,031,865 
        
The maturity of borrowings is as follows:
Expected Maturity Date
202420252026 and thereafterAt December 31, (1)
20232022
Borrowings - Fixed Rate315,696 — — 315,696 295,033 
Borrowings - Floating Rate599,727 9,335 — 609,062 736,832 
Bonds21,111 — 743,699 764,810 — 
Debentures3,920 — 452,926 456,846 — 
Total940,454 9,335 1,196,625 2,146,414 1,031,865 
(1) As most borrowings and the debentures incorporate floating rates that approximate market rates and the contractual repricing occurs mostly every 1 month, the fair value of the borrowings and the debentures approximates their carrying amount and it is not disclosed separately. Fixed rate borrowings are uncommitted short-term revolving loans, and their fair value approximates to their carrying amount. Regarding the bonds, its fair value approximates the market value.
The weighted average interest rates - which incorporate instruments denominated mainly in U.S. dollars and which do not include the effect of derivative financial instruments nor the devaluation of these local currencies - at year-end were as follows:
As of December 31,
20232022
Bank borrowings7.28 %6.21 %
Bonds5.88 %— 
Debentures12.52 %— 
The nominal average interest rates shown above were calculated using the rates set for each instrument in its corresponding currency and weighted using the dollar-equivalent outstanding principal amount of said instruments as of December 31, 2023 and 2022, respectively.
24.    BORROWINGS (continued)
Breakdown of borrowings by currency is as follows:
As of December 31,
CurrenciesContract20232022
$Floating609,062 684,554 
$Fixed1,021,909 197,259 
BRLFloating456,846 — 
BRLFixed352 — 
COPFixed53,135 92,680 
GTQFixed5,110 5,094 
COPFloating— 38,934 
MXNFloating— 13,339 
ARSFloating— 5 
2,146,414 1,031,865 
$: U.S. dollars; ARS: Argentine pesos; BRL: Brazilian reais; COP: Colombian pesos; GTQ: Guatemalan quetzales; MXN: Mexican pesos.
Ternium’s most significant current borrowings as of December 31, 2023, were those incurred under Ternium Brasil's syndicated loan facility, in order to finance solely activities related to its exports of goods, and under Usiminas’ bonds and debentures issued in order to refinance its financial debt:
In $ million
DateBorrowerTypeOriginal principal amountOutstanding principal amount as of December 31, 2023Maturity
August 2019Ternium BrasilSyndicated loan500 500 August 2024
July 2019UsiminasBonds750 750 July 2026
May 2022UsiminasDebentures - 8th emission145 134 May 2029
December 2022UsiminasDebentures - 9th emission310 287 December 2032
The main covenants on these loan agreements, bonds and debentures are limitations on liens and encumbrances, limitations on the sale of certain assets and compliance with financial ratios (i.e. leverage ratio). As of December 31, 2023, Ternium was in compliance with all of its covenants.