XML 60 R21.htm IDEA: XBRL DOCUMENT
v3.19.1

OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | 12 Months Ended
--- | ---
Dec. 31, 2018
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES |
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | NOTE 15 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Liabilities are detailed as follows:
Current |  | 12.31.2018 |  | 12.31.2017
|  | ThCh$ |  | ThCh$
Bank loans |  | 21,542,736 |  | 31,470,003
Bonds payable |  | 20,664,481 |  | 20,156,295
Deposits in guarantee |  | 12,242,464 |  | 13,849,504
Derivative contract obligations (see note 20) |  | 130,829 |  | 445,278
Leasing agreements |  | 1,534,467 |  | 2,060,325
Total |  | 56,114,977 |  | 67,981,405
Non-current |  | 12.31.2018 |  | 12.31.2017
|  | ThCh$ |  | ThCh$
Bank loans |  | 2,439,253 |  | 13,057,542
Bonds payable |  | 700,327,057 |  | 648,228,554
Leasing agreements |  | 13,797,468 |  | 14,481,105
Total |  | 716,563,778 |  | 675,767,201
The fair value of financial assets and liabilities as of December 31, 2018 and 2017 is presented below:
|  | Book Value |  | Fair Value |  | Book Value |  | Fair Value
Current |  | 12.31.2018 |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2017
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Cash and cash equivalents (3) |  | 137,538,613 |  | 137,538,613 |  | 136,242,116 |  | 136,242,116
Other financial assets (3) |  | 683,567 |  | 683,567 |  | 14,138,161 |  | 14,138,161
Trade and other accounts receivable (3) |  | 187,210,279 |  | 187,210,279 |  | 191,284,680 |  | 191,284,680
Accounts receivable from related companies (3) |  | 9,450,263 |  | 9,450,263 |  | 5,370,232 |  | 5,370,232
Bank loans (1) |  | 21,542,736 |  | 20,298,761 |  | 31,470,003 |  | 31,006,898
Bonds payable (2) |  | 20,664,481 |  | 22,318,939 |  | 20,156,295 |  | 22,484,452
Deposits in guarantee (3) |  | 12,242,464 |  | 12,242,464 |  | 13,849,504 |  | 13,849,504
Derivative contract obligations (3) (see note 20) |  | 130,829 |  | 130,829 |  | 445,278 |  | 445,278
Leasing agreements (3) |  | 1,534,467 |  | 1,534,467 |  | 2,060,325 |  | 2,060,325
Trade and other accounts payable (3) |  | 238,109,847 |  | 238,109,847 |  | 257,519,477 |  | 257,519,477
Accounts payable from related companies (3) |  | 45,827,859 |  | 45,827,859 |  | 33,961,437 |  | 33,961,437
Non-current |  | 12.31.2018 |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2017
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Other financial assets (3) |  | 97,362,295 |  | 97,362,295 |  | 74,259,085 |  | 75,259,085
Trade and other receivables |  | 1,270,697 |  | 1,270,697 |  | 2,395,851 |  | 2,395,851
Accounts receivable from related companies (3) |  | 74,340 |  | 74,340 |  | 156,492 |  | 156,492
Bank loans (1) |  | 2,439,253 |  | 2,307,396 |  | 13,057,542 |  | 11,588,575
Bonds payable (2) |  | 700,327,057 |  | 755,694,265 |  | 648,228,554 |  | 722,044,324
Leasing agreements (3) |  | 13,797,468 |  | 13,797,468 |  | 14,481,105 |  | 14,481,105
Trade and other accounts payable (3) |  | 735,665 |  | 735,665 |  | 1,132,926 |  | 1,132,926
| (1) |  | The fair values are based on discounted cash flows using market discount rates as of the close of each fiscal year and are Level 2 fair value measurements.
| (2) |  | The fair value of corporate bonds is classified as Level 2 fair value measurements based on quoted prices for the Company’s obligations.
| (3) |  | The fair value approximates book value considering the nature and term of the obligations.
15.1.1 Bank obligations, current
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  | Total
Indebted Entity |  | Creditor Entity |  |  |  | Type |  | Effective |  | Nominal |  | Up to |  | 90 days |  | at |  | at
Tax ID, |  | Name |  | Country |  | Tax ID, |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 90 days |  | To 1 year |  | 12.31.2018 |  | 12.31.2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
91.144.000-8 |  | Embotelladora Andina S.A. |  | Chile |  | 97032000-8 |  | Banco Scotiabank |  | Chile |  | Chilean pesos |  | Monthly |  | 3.64 | % | 3.64 | % | — |  | — |  | — |  | 300,000
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | UF |  | Semiannually |  | 2.13 | % | 2.13 | % | — |  | 726,943 |  | 726,943 |  | 709,794
Foreign |  | Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco de la Nación Argentina |  | Argentina |  | Argentine pesos |  | Monthly |  | 20.00 | % | 20.00 | % | 1,071 |  | — |  | 1,071 |  | 9,965,133
Foreign |  | Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Galicia y Buenos Aires S.A. |  | Argentina |  | Argentine pesos |  | Monthly |  | 20.00 | % | 20.00 | % | — |  | — |  | — |  | 3,352,417
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 7.48 | % | 7.48 | % | — |  | — |  | — |  | 298,456
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 6.63 | % | 6.63 | % | — |  | — |  | — |  | 1,359,471
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 6.63 | % | 6.63 | % | 82,480 |  | 88,935 |  | 171,415 |  | —
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 7.15 | % | 7.15 | % | 83,151 |  | 194,366 |  | 277,517 |  | —
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Quarterly |  | 7.15 | % | 7.15 | % | — |  | — |  | — |  | 1,611,747
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Semiannually |  | 4.50 | % | 4.50 | % | — |  | — |  | — |  | 2,541,016
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Quarterly |  | 4.50 | % | 4.50 | % | 616,808 |  | 1,838,770 |  | 2,455,578 |  | —
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Quarterly |  | 6.24 | % | 6.24 | % | — |  | 17,910,212 |  | 17,910,212 |  | 11,331,969
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21,542,736 |  | 31,470,003
15.1.2 Bank obligations, non-current
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity
Indebted Entity |  | Creditor Entity |  |  |  | Type |  | Effective |  | Nominal |  | 1 year up to |  | More 2 years |  | More 3 years |  | More 4 years |  | More 5 |  | at
Tax ID |  | Name |  | Country |  | Tax ID |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 2 years |  | Up to 3 years |  | Up to 4 years |  | Up to 5 years |  | Years |  | 12.31.2018
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | UF |  | Semiannually |  | 2.1 | % | 2.1 | % | 1,434,786 |  | — |  | — |  | — |  | — |  | 1,434,786
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 6.6 | % | 6.6 | % | 72,439 |  | 43,033 |  | 43,033 |  | 81,225 |  | — |  | 239,730
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 7.2 | % | 7.2 | % | 151,873 |  | — |  | — |  | — |  | — |  | 151,873
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Quarterly |  | 6.2 | % | 6.2 | % | — |  | — |  | — |  | — |  | — |  | —
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Quarterly |  | 4.5 | % | 4.5 | % | 612,864 |  | — |  | — |  | — |  | — |  | 612,864
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,439,253
15.1.2 Bank obligations, non-current December 31, 2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity
Indebted Entity |  | Creditor Entity |  |  |  | Type |  | Effective |  | Nominal |  | 1 year up to |  | More 2 years |  | More 3 years |  | More 4 years |  | More 5 |  | at
Tax ID |  | Name |  | Country |  | Tax ID |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 2 years |  | Up to 3 years |  | Up to 4 years |  | Up to 5 years |  | Years |  | 31.12.2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | Unidad de fomento |  | Semiannually |  | 2.1 | % | 2.1 | % | 2,092,245 |  | — |  | — |  | — |  | — |  | 2,092,245
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Alfa |  | Brazil |  | Brazilian real |  | Monthly |  | 7.5 | % | 7.5 | % | 125,461 |  | 125,461 |  | 125,461 |  | 627,305 |  | — |  | 1,003,688
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 6.6 | % | 6.6 | % | 504,700 |  | 197,779 |  | 44,639 |  | 128,887 |  | — |  | 876,005
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 7.2 | % | 7.2 | % | 1,593,608 |  | 1,202,096 |  | 663,779 |  | 2,449,851 |  | — |  | 5,909,334
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Quarterly |  | 4.5 | % | 4.5 | % | 3,176,270 |  | — |  | — |  | — |  | — |  | 3,176,270
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13,057,542
15.1.3 Current and non-current bank obligations “Restrictions” Bank obligations are not subject to restrictions for the reported periods. 15.2.1 Bonds payable During 2018, Andina carried out a debt restructuring process that consisted of a partial repurchase in the amount of US$210 million of the 144A/RegS Senior Notes and refinancing it with the placement of Series F bonds in the local market in the amount of UF 5.7 million due 2039 and accruing an annual interest rate of 2.83%. The costs corresponding to the repurchase of bonds, associated with premium payments, overpricing and proportional amortization of placement costs and discounts in bonds in original U.S. Dollars amounting to ThCh$9,583,000, were recorded in results under the item financial costs.
|  | Current |  | Non-current |  | Total
Composition of bonds payable |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2018 |  | 12.31.2017 |  | 12.31.2018 |  | 12.31.2017
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Bonds (face value) |  | 21,038,064 |  | 20,547,117 |  | 704,048,747 |  | 651,459,940 |  | 725,086,811 |  | 672,007,057
Expenses of bond issuance and discounts on placement |  | (373,583) |  | (390,822) |  | (3,721,690) |  | (3,231,386) |  | (4,095,273) |  | (3,622,208)
Net balance presented in statement of financial position |  | 20,664,481 |  | 20,156,295 |  | 700,327,057 |  | 648,228,554 |  | 720,991,538 |  | 668,384,849
15.2.2 Current and non-current balances Obligations with the public correspond to bonds in UF issued by the parent company on the Chilean market and bonds in US dollars issued by the Parent Company on the international market. A detail of these instruments is presented below:
|  |  |  |  |  |  |  |  |  |  |  |  |  | Date |  |  |  |
|  |  |  | Face |  | Unit of |  | Interest |  | final |  | Interest |  | Amortization of |  |  |  |
Bonds, current portion |  | Series |  | amount |  | Adjustment |  | rate |  | Maturity |  | Payment |  | capital |  | 12.31.2018 |  | 12.31.2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$
CMF Registration N°254 CMF 06.13.2001 |  | B |  | 2.228.199 |  | UF |  | 6.5 | % | 06.01.2026 |  | Semiannually |  | 00.01.2019 |  | 6,598,389 |  | 6,071,687
CMF Registration N°641 08.23.2010 |  | C |  | 1,500,000 |  | UF |  | 4.0 | % | 08.15.2031 |  | Semiannually |  | 02.15.2021 |  | 614,152 |  | 597,049
CMF Registration N°759 08.20.2013 |  | C |  | 500,000 |  | UF |  | 3.5 | % | 08.16.2020 |  | Semiannually |  | 02.16.2018 |  | 7,069,487 |  | 6,959,157
CMF Registration N°760 08.20.2013 |  | D |  | 4,000,000 |  | UF |  | 3.8 | % | 08.16.2034 |  | Semiannually |  | 02.16.2032 |  | 1,545,334 |  | 1,502,299
CMF Registration N°760 04.02.2014 |  | E |  | 3,000,000 |  | UF |  | 3.75 | % | 03.01.2035 |  | Semiannually |  | 09.01.2032 |  | 1,027,009 |  | 998,409
CMF Registration N°912 10.10.2018 |  | F |  | 5,700,000 |  | UF |  | 2.83 | % | 09.25.2016 |  | Semiannually |  | 09.25-2039 |  | 1,013,805 |  |
Bonds USA |  | — |  | 365,000,000 |  | US$ |  | 5.0 | % | 10.01.2023 |  | Semiannually |  | 10.01.2023 |  | 3,169,888 |  | 4,418,516
Total current portion |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21,038,064 |  | 20,547,117
Bonds non-current portion |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CMF Registration N°254 CMF 06.13.2001 |  | B |  | 2.228.199 |  | UF |  | 6.5 | % | 06.01.2026 |  | Semiannually |  | 00.01.2019 |  | 52,132,023 |  | 56,795,423
CMF Registration N°641 08.23.2010 |  | C |  | 1,500,000 |  | UF |  | 4.0 | % | 08.15.2031 |  | Semiannually |  | 02.15.2021 |  | 41,348,685 |  | 40,197,210
CMF Registration N°759 08.20.2013 |  | C |  | 500,000 |  | UF |  | 3.5 | % | 08.16.2020 |  | Semiannually |  | 02.16.2018 |  | 6,891,448 |  | 13,399,069
CMF Registration N°760 08.20.2013 |  | D |  | 4,000,000 |  | UF |  | 3.8 | % | 08.16.2034 |  | Semiannually |  | 02.16.2032 |  | 110,263,160 |  | 107,192,560
CMF Registration N°760 04.02.2014 |  | E |  | 3,000,000 |  | UF |  | 3.75 | % | 03.01.2035 |  | Semiannually |  | 09.01.2032 |  | 82,697,378 |  | 80,394,428
CMF Registration N°912 10.10.2018 |  | F |  | 5,700,000 |  | UF |  | 2.83 | % | 09.25.2016 |  | Semiannually |  | 09.25-2039 |  | 157,125,003 |  |
Bonds USA |  | — |  | 365,000,000 |  | US$ |  | 5.0 | % | 10.01.2023 |  | Semiannually |  | 10.01.2023 |  | 253,591,050 |  | 353,481,250
Bonds non-current portion |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 704,048,747 |  | 651,459,940
Accrued interest included in the current portion of bonds totaled ThCh$ 7,856,274 and ThCh$8,105,642 at December 31, 2018 and 2017, respectively. 15.2.3 Non-current maturities
|  |  |  | Year of maturity |  | Total non-
|  |  |  | more than 1 |  | more than 2 |  | more than 3 |  |  |  | current
|  | Series |  | to 2 |  | to 3 |  | to 4 |  | More than 5 |  | 12.31.2018
|  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
SVS Registration N°254 06.13.2001 |  | B |  | 6,704,717 |  | 7,134,663 |  | 7,598,414 |  | 30,694,229 |  | 52,132,023
SVS Registration N°641 08.23.2010 |  | C |  | — |  | 1,879,436 |  | 3,758,871 |  | 35,710,378 |  | 41,348,685
SVS Registration N°759 08.20.2013 |  | C |  | 3,445,724 |  | 3,445,724 |  | — |  | — |  | 6,891,448
SVS Registration N°760 08.20.2013 |  | D |  | — |  | — |  | — |  | 110,263,160 |  | 110,263,160
SVS Registration N°760 04.02.2014 |  | E |  | — |  | — |  | — |  | 82,697,378 |  | 82,697,378
CMF Registration N°912 10.10.2018 |  | F |  |  |  |  |  |  |  | 157,125,003 |  | 157,125,003
Bonds USA |  | — |  | — |  | — |  | — |  | 253,591,050 |  | 253,591,050
Total |  |  |  | 10,150,441 |  | 12,459,823 |  | 11,357,285 |  | 670,081,198 |  | 704,048,747
15.2.4 Market rating The bonds issued on the Chilean market had the following rating as of December 31, 2018:
AA | : | ICR Compañía Clasificadora de Riesgo Ltda. rating
AA | : | Fitch Chile Clasificadora de Riesgo Limitada rating
The rating of bonds issued on the international market as of December 31, 2018, is the following:
BBB | : | Standard&Poors rating
BBB+ | : | Fitch Chile Clasificadora de Riesgo Limitada rating.
15.2.5 Restrictions 15.2.5.1 Restrictions regarding bonds placed abroad. On September 26, 2013, Andina issued a bond in the U.S. Market (Bonds USA) for US$575 million at a coupon rate of 5.0% maturing on October 1, 2023. These bonds do not have financial restrictions. In October 2018, there was a partial repurchase of this bond for US $210 million, with US$365 million remaining outstanding. 15.2.5.2 Restrictions regarding bonds placed in the local market. For purposes of the calculation of the covenants, the amount of EBITDA that was agreed on each bond issue is included. Restrictions regarding the issuance of bonds for a fixed amount registered under number 254. The outstanding series as of December 31, 2018, is Series B for a nominal amount of up to UF 4 million, of which amount UF 3.7 million in bonds were placed with final maturity in the year 2026 at a 6.50% annual interest rate. The balance of outstanding capital as of December 31, 2018 is UF 2,228 million. Series B was issued with charge to the bonds line registered with the Securities Registered under number 254 dated September 13, 2001. Regarding Series B, the Issuer is subject to the following restrictions:
| · |  | Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Financial Statements. Consolidated Equity will be regarded as total equity including non-controlling interest.
As of December 31, 2018, indebtedness level is 0.78 times of Consolidated Equity.
| · |  | Maintain, and in no manner lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” (Región Metropolitana) as a territory in Chile in which we have been authorized by The Coca-Cola Company for the development, production, sale and distribution of products and brands of the licensor, in accordance to the respective bottler or license agreement, renewable from time to time.
| · |  | Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of this date is franchised by TCCC to the Company for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow.
| · |  | Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.
Unsecured consolidated liabilities payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. As of December 31, 2018, this index is 1.66 times. Restrictions regarding bond lines registered in the Securities Registered under number 641. Because of our merger with Coca-Cola Polar S.A., Andina became a debtor of the following two bonds placed in the Chilean market in 2010:
| · |  | UF 1.5 million of Series C bonds due 2031, bearing an annual interest rate of 4.00%. As of December 31, 2018, the balance of outstanding capital is UF 1.5 million.
Series C was issued with charge to the Bond Lines registered with the Securities Registrar, under number 641, on August 23, 2010. Regarding Series C, the Issuer is subject to the following restrictions:
| · |  | Maintain a level of “Net Financial Debt” within its quarterly financial statements that may not exceed 1.5 times, measured over figures included in its consolidated statement of financial position. To this end, net financial debt shall be defined as the ratio between net financial debt and total equity of the issuer (equity attributable to controlling owners plus non-controlling interest). On its part, net financial debt will be the difference between the Issuer’s financial debt and cash.
As of December 31, 2018, Net Financial Debt was 0.62 times.
| · |  | Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.
Unencumbered assets refer to the assets that meet the following conditions: are the property of the issuer; classified under Total Assets of the Issuer’s Financial Statements; and that are free of any pledge, mortgage or other liens constituted in favor of third parties, less “Other Current Financial Assets” and “Other Non-Current Financial Assets” of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities). Unsecured total liabilities correspond to: liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s Financial Statement which do not benefit from preferences or privileges, less “Other Current Financial Assets” and “Other Non-Current Financial Assets” of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities). As of December 31, 2018, this index is 1.66 times.
| · |  | Maintain a level of “Financial net coverage” in its quarterly financial statements of more than 3 times. Net financial coverage means the ratio between the Issuer’s Ebitda for the past 12 months and net financial expenses (financial income less financial expenses) of the issuer for the past 12 months. However, this restriction will be considered breached when the mentioned net financial coverage level is lower than the level previously indicated during two consecutive quarters.
As of December 31, 2018, Net Financial Coverage level is 6.08 times. Restrictions regarding bond lines registered in the Securities Registrar under numbers 759 and 760. During 2013 and 2014, Andina placed local bonds in the Chilean market. The issuances were structured into three series.
| · |  | Series C outstanding as of December 31, 2018, for a nominal value of up to UF 3 million, of which bonds were placed for a nominal amount of UF1.0 million with final maturity during year 2020 at an annual interest rate of 3.50% issued against line number 759. Outstanding capital as of December 31, 2018, is UF 0.500 million.
| · |  | Series D and E outstanding as of December 31, 2018, for a total nominal value of UF 8 million, of which UF 4 million were placed in bonds during August 2013 (series D) and UF 3 million during April 2014 (series E), with final maturity in 2034 and 2035, respectively, issued with charge against line number 760. The annual interest rates are 3.8% for Series D and 3.75% for Series E. The outstanding capital balance as of December 31, 2018, of both series amounts to UF 7.000 million.
Regarding Series C, D and E, the Issuer is subject to the following restrictions:
| · |  | Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv) other current financial assets, and (v) other non-current financial assets (to the extent they are asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest.
As of December 31, 2018, Indebtedness Level is 0.62 times of Consolidated Equity.
| · |  | Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities payable.
Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. As of December 31, 2018, this index is 1.66 times.
| · |  | Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” as a territory franchised to the Issuer in Chile by The Coca-Cola Company, hereinafter also referred to as “TCCC” or the “Licensor” for the development, production, sale and distribution of products and brands of said licensor, in accordance to the respective bottler or license agreement, renewable from time to time. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called “Metropolitan Region”. This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory is purchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer.
| · |  | Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of these instruments is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the term “Adjusted
Consolidated Operating Cash Flow” shall mean the addition of the following accounting accounts of the Issuer’s Consolidated Statement of Financial Position: (i) “Gross Profit” which includes regular activities and cost of sales; less (ii) “Distribution Costs”; less (iii) “Administrative Expenses”; plus (iv) “Participation in profits (losses) of associates and joint ventures that are accounted for using the equity method”; plus (v) “Depreciation”; plus (vi) “Intangibles Amortization”. Restrictions regarding bond lines registered in the Securities Registrar under number 912. In October 2018, a Series F bond was issued in the amount of UF 5.7 million due 2039 and accruing an annual interest rate of 2.8%. Regarding Series F Local Bond, the Issuer is subject to the following restrictions:
| · |  | Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times.
For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv) other current financial assets, and (v) other non-current financial assets (to the extent they are asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2018, this index equals 0.62 times.
| · |  | Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities payable.
Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position. As of December 31, 2018, this index equals 1.66 times.
| · |  | Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” as a territory franchised to the Issuer in Chile by The Coca-Cola Company, for the development, production, sale and distribution of products and brands of said licensor, in accordance to the respective bottler or license agreement, renewable from time to time. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called "Metropolitan Region". This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory is purchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer.
| · |  | Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of local bonds Series C, D and E is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accounting accounts of the Issuer's Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular activities and cost of sales; less (ii) "Distribution Costs"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits (losses) of associates and joint ventures that are accounted for using the equity method"; plus (v) "Depreciation"; plus (vi) "Intangibles Amortization".
As of December 31, 2018, and December 31, 2017, the Company complies with all financial collaterals. 15.2.6 Repurchased bonds In addition to UF bonds, the Company holds bonds that it has repurchased in full through companies that are included in the consolidation: The subsidiary Rio de Janeiro Refrescos Ltda. maintains a liability corresponding to a bond issuance for US $75 million due in December 2020 and semi-annual interest payments. As of December 31, 2017, these issues are held by Andina. On January 1, 2013, Abisa Corp S.A. transferred the totality of this asset to Embotelladora are Andina S.A., the latter becoming the creditor of the above-mentioned Brazilian subsidiary. Consequently, the assets and liabilities related to the transaction have been eliminated from these Consolidated Financial Statements. In addition, the transaction has been treated as a net investment of the group in the Brazilian subsidiary; consequently, the effects of exchange rate differences between the dollar and the functional currency of each one has been recorded in other comprehensive income. 15.3.1 Derivative contract obligations Please see details in Note 20. 15.4.1 Current liabilities for leasing agreements
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  | Total
Indebted Entity |  | Creditor Entity |  |  |  | Amortization |  | Effective |  | Nominal |  | Up to |  | 90 days to |  | at |  | At
Name |  | Country |  | Tax ID |  | type |  | Type |  | Currency |  | Type |  | rate |  | rate |  | 90 days |  | 1 year |  | 12.31.2018 |  | 12.31.2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 10.215 | % | 10.227 | % | 11,996 |  | , |  | 11,996 |  | 41,467
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 9.65 | % | 9.47 | % | 51,766 |  | 23,494 |  | 75,260 |  | 504,815
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Citibank |  | Brazil |  | Brazilian real |  | Monthly |  | 8.54 | % | 8.52 | % | 57,750 |  | 51,823 |  | 109,573 |  | 528,801
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração Light Esco |  | Brazil |  | Brazilian real |  | Monthly |  | 13.00 | % | 12.28 | % | 171,115 |  | 545,863 |  | 716,978 |  | 657,610
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Tetra Pack |  | Brazil |  | Brazilian real |  | Monthly |  | 7.65 | % | 7.39 | % | 57,561 |  | 282,104 |  | 339,665 |  | —
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Tetra Pak SRL |  | Argentina |  | Dollars |  | Monthly |  | 12.00 | % | 12.00 | % | 280,995 |  | — |  | 280,995 |  | 327,632
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,534,467 |  | 2,060,325
15.4.2 Non-current liabilities for leasing agreements December 31, 2018
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  |
Indebted Entity |  | Creditor Entity |  |  |  | Amortization |  | Effective |  | Nominal |  | 1 year to |  | 2 years to |  | 3 years to |  | 4 years to |  | More |  | at
Name |  | Country |  | Tax ID |  | Name |  | type |  | Currency |  | Type |  | rate |  | Rate |  | 2 years |  | 3 years |  | 4 years |  | 5 years |  | 5 years |  | 12.31.2018
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração Light Esco |  | Brazil |  | Brazilian real |  | Monthly |  | 13.00 | % | 12.28 | % | 810,185 |  | 915,509 |  | 1,034,525 |  | 1,169,014 |  | 9,466,995 |  | 13,396,228
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Tetra Pack |  | Brazil |  | Brazilian real |  | Monthly |  | 7.65 | % | 7.39 | % | 401,240 |  | — |  | — |  | — |  | — |  | 401,240
TOTAL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13,797,468
15.4.3 Non-current liabilities for leasing agreements December 31, 2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  |
Indebted Entity |  | Creditor Entity |  |  |  | Amortization |  | Effective |  | Nominal |  | 1 year to |  | 2 years to |  | 3 years to |  | 4 years to |  | More |  | at
Tax ID |  | Name |  | Country |  | Tax, ID |  | Name |  | Country |  | Currency |  | Type |  | rate |  | Rate |  | 2 years |  | 3 years |  | 4 years |  | 5 years |  | 5 years |  | 12.31.2017
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | Brazilian real |  | Monthly |  | 10.21 | % | 10.22 | % | 11,764 |  | — |  | — |  | — |  | — |  | 11,764
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Santander |  | Brazil |  | Brazilian real |  | Monthly |  | 9.65 | % | 9.47 | % | 73,799 |  | — |  | — |  | — |  | — |  | 73,799
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Citibank |  | Brazil |  | Brazilian real |  | Monthly |  | 8.54 | % | 8.52 | % | 105,807 |  | — |  | — |  | — |  | — |  | 105,807
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração Light Esco |  | Brazil |  | Brazilian real |  | Monthly |  | 13.00 | % | 12.28 | % | 743,100 |  | 839,703 |  | 948,864 |  | 1,072,216 |  | 10,685,852 |  | 14,289,735
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14,481,105
15.4.4 Current and non-current leasing agreements obligations “Restrictions” Leasing agreement obligations are not subject to financial restrictions for the reported periods.

X
- Definition The entire disclosure for financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2018-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2018-03-01&anchor=sect_Scope&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfFinancialLiabilitiesAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration