Loans, Debentures, and Finance Leases (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Compostion of loans

a. Composition

Description

12/31/2018

12/31/2017

Index/Currency

Weighted average
financial charges
12/31/2018 –% p.a.

Maturity

Foreign currency—denominated loans:

Notes in the foreign market (b) (*)

2,889,631

2,454,142

US$

+5.3

2026

Foreign loan (c.1) (*)

985,268

259,015

US$

+3.9

2021 to 2023

Financial institutions (e)

620,605

330,755

US$ + LIBOR (1)

+2.1

2019 to 2023

Foreign loan (c.1) (*)

582,106

788,794

US$ + LIBOR (1)

+0.9

2022 to 2023

Foreign loan (c.2)

234,363

298,927

US$ + LIBOR (1)

+2.0

2020

Financial institutions (e)

127,288

106,745

US$

+2.9

2019 to 2022

Financial institutions (e)

27,845

27,048

MX$ (2)

+9.0

2019

Advances on foreign exchange contracts

11,702

44,515

US$

+3.2

< 12 days

Financial institutions (e)

3,950

3,382

MX$ + TIIE (2)

+1.5

2019

BNDES (d)

2,596

4,460

US$

+6.5

2019 to 2020

Foreign currency advances delivered

1,485

26,080

US$

+2.9

< 33 days

Financial institutions (e)

—

593

Bs$ (7)

Total foreign currency

5,486,839

4,344,456


Description	12/31/2018		12/31/2017		Index/Currency		Weighted average financial charges 12/31/2018 –% p.a.		Maturity
Brazilian Reais—denominated loans:
Banco do Brasil—floating rate (f)		2,614,704		2,794,272		CDI		107.3		2019 to 2022
Debentures—Ipiranga (g.1, g.3,and g.5)		2,039,743		2,836,741		CDI		105.0		2019 to 2022
Debentures—CRA (g.4, g.6 and g.8)		2,029,545		1,380,852		CDI		95.8		2022 to 2023
Debentures—5^th and 6^th issuance (g.2 and g.7)		1,756,954		817,654		CDI		105.3		2023
Debentures—CRA (g.4, g.6 and g.8) (*)		833,213		554,402		IPCA		+4.6		2024 to 2025
BNDES (d)		147,922		206,423		TJLP (3)		+2.4		2019 to 2023
FINEP		53,245		32,682		TJLP (3)		+1.5		2019 to 2023
BNDES (d)		51,467		69,422		SELIC (6)		+2.3		2019 to 2023
Bank Credit Bill		50,075		—		CDI		124.0		2019
Finance leases (i)		46,066		48,515		IGP-M (5)		+5.6		2019 to 2031
FINEP		22,553		35,611		R$		+4.0		2019 to 2021
Banco do Nordeste do Brasil		15,776		28,136		R$ (4)		+8.5		2019 to 2021
BNDES (d)		14,071		26,270		R$		+6.0		2019 to 2022
FINAME		32		56		TJLP (3)		+5.7		2019 to 2022
Export Credit Note—floating rate (h)		—		157,749		CDI
BNDES EXIM		—		62,754		TJLP (3)
BNDES EXIM		—		30,850		SELIC (6)

Total Brazilian Reais		9,675,366		9,082,389

Total foreign currency and Brazilian Reais		15,162,205		13,426,845
Currency and interest rate hedging instruments (**)		43,944		163,749

Total		15,206,149		13,590,594

Current		2,273,997		3,503,675
Non-current		12,932,152		10,086,919

^(*)	These transactions were designated for hedge accounting (see Note 33.h).

^(**)

Accumulated losses (see Note 33.g).

⁽¹⁾	LIBOR = London Interbank Offered Rate.

⁽²⁾	MX$ = Mexican Peso; TIIE = the Mexican interbank balance interest rate.

⁽³⁾	TJLP (Long-term Interest Rate) = set by the National Monetary Council, TJLP is the basic financing cost of Banco Nacional de Desenvolvimento Econômico e Social (“BNDES”), the Brazilian Development Bank. On December 31, 2018, TJLP was fixed at 7.03% p.a.

⁽⁴⁾

Contract linked to the rate of FNE (Northeast Constitutional Financing Fund) fund whose purpose is to promote the development of the industrial sector, managed by Banco do Nordeste do Brasil. On December 31, 2018, the FNE interest rate was 10% p.a. FNE grants a discount of 15% on the interest rate for timely payments.

⁽⁵⁾	IGP-M = General Market Price Index is a measure of Brazilian inflation, calculated by the Getúlio Vargas Foundation.

⁽⁶⁾	SELIC = basic interest rate set by the Brazilian Central Bank.

⁽⁷⁾	Bs$ = Bolívar.

Summary of Changes in Loans, Debentures and Finance Leases

The changes in loans, debentures and finance leases are shown below:


Balance on December 31, 2016	11,214,773
New loans and debentures with cash effect	4,510,694
Interest accrued	925,421
Principal payment and financial leases	(2,467,391	)
Interest payment	(769,740	)
Monetary and exchange rate variation	37,937
Change in fair value	(24,849	)

Balance on December 31, 2017	13,426,845
New loans and debentures with cash effect	4,461,112
Interest accrued	873,202
Principal payment and financial leases	(3,715,838	)
Interest payment	(737,564	)
Monetary and exchange rate variation	804,273
Change in fair value	50,175

Balance on December 31, 2018	15,162,205

Summary of Principal Maturity Schedule

The long-term debt had the following principal maturity schedule:


	12/31/2018		12/31/2017
From 1 to 2 years		962,870		1,826,907
From 2 to 3 years		1,551,083		894,640
From 3 to 4 years		3,219,451		1,302,450
From 4 to 5 years		3,431,465		3,016,406
More than 5 years		3,767,283		3,046,516

		12,932,152		10,086,919

Summary of Foreign Loan Maturity

The foreign loans have the maturity distributed as follows:


Maturity	US$ (million)		R$ (million)		Cost in % of CDI
Charges (1)		9.5		36.8		—
Jun/2021		100.0		387.5		105.0
Jul/2021		60.0		232.5		101.8
Jul/2023		50.0		193.7		104.8
Sep/2023		60.0		232.5		105.0
Sep/2023		65.0		251.9		104.7
Nov/2023		60.0		232.5		104.5

Total / average cost		404.5		1,567.4		104.4

⁽¹⁾	Includes interest, transaction costs, mark to market and hedge initial recognition.

Summary of Loans and Debnture Maturity

These loans mature, as follows (includes accrued interest through December 31, 2018):


Maturity
Feb/2019			168,419
May/2019			1,432,750
May/2020			337,845
May/2021			337,845
May/2022			337,845

Total			2,614,704

Summary of Debentures

g.1. In January 2014, the subsidiary IPP made its second issuance of public debentures, in a single series of 80,000 simple, nominative, registered debentures, nonconvertible into shares and unsecured, which main characteristics are as follows:


Face value unit:		R$ 10,000.00
Final maturity:		December 20, 2018
Payment of the face value:		Lump sum at final maturity
Interest:		107.9% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable

The debentures were settled by the subsidiary IPP on the maturity date.

g.2. In March 2015, the Company made its fifth issuance of debentures, in a single series of 80,000 simple, nonconvertible into shares, unsecured debentures, which main characteristics are as follows:


Face value unit:		R$ 10,000.00
Final maturity:		March 16, 2018
Payment of the face value:		Lump sum at final maturity
Interest:		108.25% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable

The debentures were settled by the Company on the maturity date.

g.3. In May 2016, the subsidiary IPP made its fourth issuance of public debentures, in one single series of 500 simple, nominative, registered debentures, nonconvertible into shares and unsecured, which main characteristics are as follows:


Face value unit:		R$ 1,000,000.00
Final maturity:		May 25, 2021
Payment of the face value:		Annual as from May 2019
Interest:		105.0% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable

g.4. In April 2017, the subsidiary IPP carried out its fifth issuance of debentures, in two series, being one of 660,139 and another of 352,361, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Eco Consult – Consultoria de Operações Financeiras Agropecuárias Ltda. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP.

The debentures were later assigned and transferred to Eco Securitizadora de Direitos Creditórios do Agronegócio S.A. that acquired these agribusiness credit rights with the purpose to bind the issuance of Certificates of Agribusiness Receivables (CRA). The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:


Amount:		660,139
Face value unit:		R$ 1,000.00
Final maturity:		April 18, 2022
Payment of the face value:		Lump sum at final maturity
Interest:		95% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable


Amount:		352,361
Face value unit:		R$ 1,000.00
Final maturity:		April 15, 2024
Payment of the face value:		Lump sum at final maturity
Interest:		IPCA + 4.68%
Payment of interest:		Annually
Reprice:		Not applicable

The subsidiary IPP contracted hedging instruments subjected to IPCA variation, changing the debentures charges linked to IPCA to 93.9% of CDI. IPP designated these hedging instruments as fair value hedges; therefore, debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss.

g.5. In July 2017, the subsidiary IPP made its sixth issuance of public debentures, in one single series of 1,500,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:


Face value unit:		R$ 1,000.00
Final maturity:		July 28, 2022
Payment of the face value:		Annual as from July 2021
Interest:		105.0% of CDI
Payment of interest:		Annually
Reprice:		Not applicable

g.6. In October 2017, the subsidiary IPP carried out its seventh issuance of debentures in the amount of R$ 944,077, in two series, on of 730,384 and another of 213,693, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Vert Companhia Securitizadora. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP.

The debentures were later assigned and transferred to Vert Créditos Ltda., that acquired these agribusiness credit rights with the purpose to bind the issuance of Certificates of Agribusiness Receivables (CRA). The financial settlement occurred on November 1, 2017. The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:


Amount:		730,384
Face value unit:		R$ 1,000.00
Final maturity:		October 24, 2022
Payment of the face value:		Lump sum at final maturity
Interest:		95% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable


Amount:		213,693
Face value unit:		R$ 1,000.00
Final maturity:		October 24, 2024
Payment of the face value:		Lump sum at final maturity
Interest:		IPCA + 4.34%
Payment of interest:		Annually
Reprice:		Not applicable

The subsidiary IPP contracted hedging instruments subjected to IPCA variation, changing the debentures charges linked to IPCA to 97.3% of CDI. IPP designated these hedging instruments as fair value hedges; therefore, debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss.

g.7. In March 2018, the Company made its sixth issuance of public debentures, in a single series of 1,725,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:


Face value unit:		R$ 1,000.00
Final maturity:		March 5, 2023
Payment of the face value:		Lump sum at final maturity
Interest:		105.25% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable

g.8. In December 2018, the subsidiary IPP carried out its eighth issuance of debentures in the amount of R$ 900,000, in two series, one of 660,000 and another of 240,000, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Vert Companhia Securitizadora. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP.

The financial settlement occurred on December 21, 2018. The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:


Amount:		660,000
Face value unit:		R$ 1,000.00
Final maturity:		December 18, 2023
Payment of the face value:		Lump sum at final maturity
Interest:		97.5% of CDI
Payment of interest:		Semiannually
Reprice:		Not applicable


Amount:		240,000
Face value unit:		R$ 1,000.00
Final maturity:		December 15, 2025
Payment of the face value:		Lump sum at final maturity
Interest:		IPCA + 4.61%
Payment of interest:		Annually
Reprice:		Not applicable

Summary of debentures maturity dates distribution

The debentures have maturity dates distributed as shown below (includes accrued interest through December 31, 2018).


Maturity
May/2019			168,897
May/2020			165,786
May/2021			165,786
Apr/2022			657,538
Jul/2022			1,539,274
Oct/2022			727,229
Mar/2023			1,756,954
Dec/2023			644,778
Apr/2024			377,567
Oct/2024			217,861
Dec/2025			237,785

Total			6,659,455

Summary of Equipment and Intangible Assets, Net of Depreciation and Amortization, and Corresponding Liabilities

The amounts of equipment and intangible assets, net of depreciation and amortization, and the amounts of the corresponding liabilities are shown below:


	12/31/2018		12/31/2017
Equipment and intangible assets, net of depreciation and amortization		13,783		15,732
Financing (present value)		46,066		48,515

Current		2,849		2,710
Non-current		43,217		45,805

The future disbursements (installments) assumed under these contracts are presented below:


	12/31/2018		12/31/2017
Up to 1 year		5,124		5,113
From 1 to 2 years		5,124		5,113
From 2 to 3 years		5,124		5,113
From 3 to 4 years		5,124		5,113
From 4 to 5 years		5,124		5,113
More than 5 years		37,574		42,611

Total		63,194		68,176

Summary of Transaction Costs

Transaction costs incurred in issuing debt were deducted from the value of the related financial instruments and are recognized as an expense according to the effective interest rate method, as follows:


	Effective rate of transaction costs (% p.a.)		Balance on 12/31/2017		Incurred cost		Amortization			Balance on 12/31/2018
Debentures (g)		0.2		44,709		21,308		(9,641	)		56,376
Notes in the foreign market (b)		0.0		15,298		—		(1,417	)		13,881
Banco do Brasil (f)		0.2		8,065		—		(4,628	)		3,437
Foreign loans (c)		0.1		1,213		—		(882	)		331
Other		0.2		2,801		366		(735	)		2,432

Total				72,086		21,674		(17,303	)		76,457


	Effective rate of transaction costs (% p.a.)		Balance on 1/1/2017		Incurred cost		Amortization			Balance on 12/31/2017
Debentures (g)		0.2		6,835		42,388		(4,514	)		44,709
Notes in the foreign market (b)		0.0		16,612		—		(1,314	)		15,298
Banco do Brasil (f)		0.2		12,182		—		(4,117	)		8,065
Foreign loans (c)		0.2		2,211		563		(1,561	)		1,213
Other		0.2		1,952		1,418		(569	)		2,801

Total				39,792		44,369		(12,075	)		72,086


	Effective rate of transaction costs (% p.a.)		Balance on 12/31/2015		Incurred cost		Amortization			Balance on 12/31/2016
Debentures (g)		0.1		1,801		6,407		(1,373	)		6,835
Notes in the foreign market (b)		0.0		—		16,821		(209	)		16,612
Banco do Brasil (f)		0.2		11,883		3,529		(3,230	)		12,182
Foreign Loans (c)		0.2		4,649		—		(2,438	)		2,211
Other		0.2		545		2,079		(672	)		1,952

Total				18,878		28,836		(7,922	)		39,792

Summary of Appropriated Profit or Loss in The Future

The amount to be appropriated to profit or loss in the future is as follows:


	Up to 1 year		1 to 2 years		2 to 3 years		3 to 4 years		4 to 5 years		More than 5 years		Total
Debentures (g)		13,171		13,298		13,217		10,115		5,255		1,320		56,376
Notes in the foreign market (b)		1,435		1,546		1,632		1,723		1,819		5,726		13,881
Banco do Brasil (f)		2,317		599		385		136		—		—		3,437
Foreign loans (c)		201		130		—		—		—		—		331
Other		773		894		445		318		2		—		2,432

Total		17,897		16,467		15,679		12,292		7,076		7,046		76,457

Oxiteno USA LLC [member]

Statement [LineItems]

Summary of Subsidiary's Loan Maturity


Maturity	US$ Millions		R$ Millions
Charges (1)		0.2		0.9
Aug/2019		10.0		38.7
Feb/2020		10.0		38.7
Aug/2020		10.0		38.7
Sep/2020		20.0		77.5
Feb/2021		10.0		38.7
Mar/2022		30.0		116.2
Oct/2022		40.0		155.0
Mar/2023		30.0		116.2

Total		160.2		620.6

⁽¹⁾	Includes interest and transaction costs.