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OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | 12 Months Ended
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Dec. 31, 2020
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES |
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | 17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Liabilities are detailed as follows:
|  | Balance
|  | Current |  | Non-current
|  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2020 |  | 12.31.2019
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Bank loans (17.1.1 – 2) |  | 799,072 |  | 1,438,161 |  | 4,000,000 |  | 909,486
Bonds payable, net 1 (17.2) |  | 18,705,015 |  | 21,604,601 |  | 918,921,342 |  | 718,962,871
Deposits in guarantee |  | 12,126,831 |  | 11,163,005 |  | — |  | —
Derivative contract liabilities (see note 22) |  | 1,217,322 |  | 374,576 |  | 51,568,854 |  | —
Leasing agreements (17.4.1 – 2) |  | 5,718,484 |  | 6,013,535 |  | 15,339,373 |  | 23,454,700
Total |  | 38,566,724 |  | 40,593,878 |  | 989,829,569 |  | 743,327,057
1 Amounts net of issuances expenses and discounts related to issuance. The fair value of financial assets and liabilities is presented below:
|  | Book Value |  | Fair Value |  | Book Value |  | Fair Value
Current |  | 12.31.2020 |  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2019
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Cash and cash equivalent (2) |  | 309,530,699 |  | 309,530,699 |  | 157,567,986 |  | 157,567,986
Other financial assets (1) |  | — |  | — |  | 317,205 |  | 317,205
Trade debtors and other accounts receivable (2) |  | 194,664,683 |  | 194,664,683 |  | 191,077,588 |  | 191,077,588
Accounts receivable related companies (2) |  | 11,875,408 |  | 11,875,408 |  | 10,835,768 |  | 10,835,768
Bank loans (2) |  | 799,072 |  | 896,307 |  | 1,438,161 |  | 1,434,255
Bonds payable (2) |  | 18,705,015 |  | 22,471,852 |  | 21,604,601 |  | 24,188,060
Bottle guaranty deposits (2) |  | 12,126,831 |  | 12,126,831 |  | 11,163,005 |  | 11,163,005
Derivative contracts liabilities (see note 22) (1) |  | 1,217,322 |  | 1,217,322 |  | 374,576 |  | 374,576
Leasing agreements (2) |  | 5,718,484 |  | 5,718,484 |  | 6,013,535 |  | 6,013,535
Accounts payable (2) |  | 230,438,133 |  | 230,438,133 |  | 243,700,553 |  | 243,700,553
Accounts payable related companies (2) |  | 39,541,968 |  | 39,541,968 |  | 53,637,601 |  | 53,637,601
Non-current |  | 12.31.2020 |  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2019
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Other financial assets (1) |  | 150,983,295 |  | 150,983,295 |  | 98,918,457 |  | 98,918,457
Accounts receivable, non-current (2) |  | 73,862 |  | 73,862 |  | 523,769 |  | 523,769
Accounts receivable related companies (2) |  | 138,346 |  | 138,346 |  | 283,118 |  | 283,118
Bank loans (2) |  | 4,000,000 |  | 4,056,753 |  | 909,486 |  | 867,025
Bonds payable (2) |  | 918,921,342 |  | 1,088,617,557 |  | 718,962,871 |  | 803,017,145
Derivative contracts liabilities (see note 22) (1) |  | 51,568,854 |  | 51,568,854 |  | — |  | —
Leasing agreements (2) |  | 15,339,373 |  | 15,339,373 |  | 23,454,700 |  | 23,454,700
Accounts payable, non-current (2) |  | 295,279 |  | 295,279 |  | 619,587 |  | 619,587
| (1) |  | Fair values are based on discounted cash flows using market discount rates at the close of the six-month and one-year period and are classified as Level 2 of the fair value measurement hierarchies.
| (2) |  | Financial instruments such as: Cash and Cash Equivalents, Trade and Other Accounts Receivable, Accounts Receivable, Bottle Guarantee Deposits and Trade Accounts Payable, and Other Accounts Payable present a fair value that approximates their carrying value, considering the nature and term of the obligation. The business model is to maintain the financial instrument in order to collect/pay contractual cash flows, in accordance with the terms of the contract, where cash flows are received/cancelled on specific dates that exclusively constitute payments of principal plus interest on that principal. These instruments are revalued at amortized cost.
17.1.1 Bank obligations, current
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  | Total
Indebted entity |  | Creditor Entity |  |  |  | Type of |  | Effective |  | Nominal |  | Up to |  | 90 days to |  | At |  | At
Taxpayer ID |  | Name |  | Country |  | Taxpayer ID |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 90 days |  | 1 year |  | 12.31.2020 |  | 12.31.2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | UF |  | Semiannually |  | 2.13 | % | 2.13 | % | — |  | 760,667 |  | 760,667 |  | 748,838
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | UF |  | Semiannually |  | 2.00 | % | 2.00 | % | 33,111 |  | — |  | 33,111 |  | —
Foreign |  | Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Galicia y Buenos Aires S.A. |  | Argentina |  | AR |  | Upon maturity |  | 82.00 | % | 82.00 | % | — |  | — |  | — |  | 8,453
Foreign |  | Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Galicia y Buenos Aires S.A. |  | Argentina |  | AR |  | Monthly |  | 26.60 | % | 26.60 | % | 5,294 |  | — |  | 5,294 |  |
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | BRL |  | Monthly |  | 6.63 | % | 6.63 | % | — |  | — |  | — |  | 635,727
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | BRL |  | Quarterly |  | 4.50 | % | 4.50 | % | — |  | — |  | — |  | 45,143
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 799,072 |  | 1,438,161
17.1.2 Bank obligations, non-current
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity
Indebted entity |  | Creditor Entity |  |  |  | Type of |  | Nominal |  | Effective |  | 1 year up to |  | More than 2 years |  | More than 3 years |  | More than 4 years |  | More than 5 |  | at
Taxpayer ID |  | Name |  | Country |  | Taxpayer ID |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 2 years |  | Up to 3 years |  | Up to 4 years |  | Up to 5 years |  | Years |  | 12.31.2020
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | CLP |  | Semiannually |  | 2.00 | % | 2.00 | % | — |  | — |  | 4,000,000 |  | — |  | — |  | 4,000,000
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,000,000
17.1.2 Bank obligations, non-current previous year
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity
Indebted Entity |  | Creditor Entity |  |  |  | Type |  | Effective |  | Nominal |  | 1 year up to |  | More than 2 years |  | More than 3 years |  | More than 4 years |  | More than 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 |  | 12.31.2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
96.705.990-0 |  | Envases Central S.A. |  | Chile |  | 97.006.000-6 |  | Banco BCI |  | Chile |  | UF |  | Semiannually |  | 2.13 | % | 2.13 | % | 736,033 |  | — |  | — |  | — |  | — |  | 736,033
Foreign |  | Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Banco Itaú |  | Brazil |  | BRL |  | Monthly |  | 6.63 | % | 6.63 | % | 44,621 |  | 44,621 |  | 44,621 |  | 39,590 |  | — |  | 173,453
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 909,486
17.1.3 Current and non-current bank obligations “Restrictions” Bank obligations are not subject to restrictions for the reported periods. 17.2 Bonds payable On January 21, 2020, the Company issued corporate bonds on the international market for USD 300 million with a 30-year maturity, with the whole principal amount due in 2039and an annual interest rate of 3.950%. During 2018, Andina carried out a debt restructuring process that consisted of a partial repurchase in the amount of USD 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 CLP 9,583,000 thousand, were recorded in results under the item financial costs.
|  | Current |  | Non-current |  | Total
Composition of bonds payable |  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2020 |  | 12.31.2019
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Bonds (face value) 1 |  | 19,347,033 |  | 22,189,595 |  | 925,968,913 |  | 721,950,553 |  | 945,315,946 |  | 744,140,148
1 Gross amounts, do not consider issuance expenses and discounts related to issuance. 17.2.1 Current and non-current balances Bonds payable correspond to bonds in UF issued by the parent company on the Chilean market and bonds in U.S. dollars issued by the Parent Company on the international market. A detail of these instruments is presented below:
|  |  |  | Current |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | nominal |  | Adjustment |  | Interest |  | Final |  | Interest |  | Current |  | Non-current
Bonds |  | Series |  | amount |  | unit |  | rate |  | maturity |  | payment |  | 12.31.2020 |  | 12.31.2019 |  | 12.31.2020 |  | 12.31.2019
|  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
CMF Registration N°254 06.13.2001 |  | B |  | 1,648,160 |  | UF |  | 6.5 | % | 12-01-2026 |  | Semiannually |  | 7,776,693 |  | 7,160,809 |  | 40,388,468 |  | 46,659,296
CMF Registration N°641 08.23.2010 |  | C |  | 1,500,000 |  | UF |  | 4.0 | % | 08-15-2031 |  | Semiannually |  | 647,672 |  | 630,731 |  | 43,605,495 |  | 42,464,910
CMF Registration N°759 08.20.2013 |  | C |  | — |  | UF |  | 3.5 | % | 08-16-2020 |  | Semiannually |  | — |  | 7,168,907 |  | — |  | —
CMF Registration N°760 08.20.2013 |  | D |  | 4,000,000 |  | UF |  | 3.8 | % | 08-16-2034 |  | Semiannually |  | 1,629,677 |  | 1,587,051 |  | 116,281,320 |  | 113,239,760
CMF Registration N°760 04.02.2014 |  | E |  | 3,000,000 |  | UF |  | 3.75 | % | 03-01-2035 |  | Semiannually |  | 1,083,063 |  | 1,048,938 |  | 87,210,999 |  | 84,929,828
CMF Registration N°912 10.10.2018 |  | F |  | 5,700,000 |  | UF |  | 2.83 | % | 09-25-2039 |  | Semiannually |  | 1,234,601 |  | 1,195,700 |  | 165,700,881 |  | 161,366,658
Bonds USA 2023 10.01.2013 |  | — |  | 365,000,000 |  | US$ |  | 5.0 | % | 10-01-2023 |  | Semiannually |  | 3,243,709 |  | 3,397,459 |  | 259,496,750 |  | 273,290,101
Bonds USA 2050 01.21.2020 |  | — |  | 300,000,000 |  | US$ |  | 3.95 | % | 01-21-2050 |  | Semiannually |  | 3,731,618 |  | — |  | 213,285,000 |  | —
Total |  |  |  |  |  |  |  |  |  |  |  |  |  | 19,347,033 |  | 22,189,595 |  | 925,968,913 |  | 721,950,553
Accrued interest included in the current portion of bonds payable as of December 31, 2020 and 2019 amounts to CLP 11,841,892 thousand and CLP 7,983,770 thousand, respectively. 17.2.3 Non-current maturities
|  |  |  | Year of maturity |  | Total non-
|  |  |  | More than 1 up |  | More than 2 up |  | More than 3 up |  |  |  | current
|  | Series |  | to 2 |  | to 3 |  | to 4 |  | More than 5 |  | 12.31.2020
|  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
CMF Registration N°254 06.13.2001 |  | B |  | 8,013,138 |  | 8,533,990 |  | 9,088,700 |  | 14,752,640 |  | 40,388,468
CMF Registration N°641 08.23.2010 |  | C |  | 3,964,136 |  | 3,964,136 |  | 3,964,136 |  | 31,713,087 |  | 43,605,495
CMF Registration N°760 08.20.2013 |  | D |  | — |  | — |  | — |  | 116,281,320 |  | 116,281,320
CMF Registration N°760 04.02.2014 |  | E |  | — |  | — |  | — |  | 87,210,999 |  | 87,210,999
CMF Registration N°912 10.10.2018 |  | F |  | — |  | — |  | — |  | 165,700,881 |  | 165,700,881
USA Bonds |  | — |  | — |  | 259,496,750 |  | — |  | — |  | 259,496,750
USA 2 Bonds |  | — |  | — |  | — |  | — |  | 213,285,000 |  | 213,285,000
Total |  |  |  | 11,977,274 |  | 271,994,876 |  | 13,052,836 |  | 628,943,927 |  | 925,968,913
17.2.4 Market rating The bonds issued on the Chilean market had the following rating:
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 had the following rating:
BBB | : | Standard&Poors Global Ratings
BBB+ | : | Fitch Ratings Inc.
17.2.5 Restrictions 17.2.5.1 Restrictions regarding bonds placed abroad. Obligations with bonds placed abroad are not affected by financial restrictions for the periods reported. 17.2.5.2 Restrictions regarding bonds placed in the local market. Restrictions on the issuance of bonds for a fixed amount registered under number 254. In October 2020, the Consolidated Financial Liabilities/Consolidated Equity no more than 1.20 times covenant was amended as follows:
| · |  | Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Net Consolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less (iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest.
As of December 31, 2020, this ratio is 0.51 times.
| · |  | 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. 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, 2020, this ratio is 1.55 times. Restrictions to bond lines registered in the Securities Registered under number 641, series C
| · |  | 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, 2020, Net Financial Debt level was 0.51 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 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, 2020, this ratio is 1.55 times.
| · |  | Maintain a level of "Net Financial Coverage" greater than 3 times in its quarterly financial statements. Net financial coverage means the ratio between the issuer's Ebitda of the last 12 months and the issuer's Net Financial Expenses in the last 12 months. Net Financial Expenses will be regarded as the difference between the absolute value of interest expense associated with the issuer's financial debt account accounted for under "Financial Costs"; and interest income associated with the issuer's cash accounted for under the Financial Income account. However, this restriction shall be deemed to have been breached where the mentioned level of net financial coverage is lower than the level previously indicated during two consecutive quarters.
As of December 31, 2020, Net Financial Coverage level is 8.50 times. Restrictions to bond lines registered in the Securities Registrar under number 760 D-E.
| · |  | Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Net Consolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less (iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest.
As of December 31, 2020, Indebtedness Level is 0.51 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, 2020, this ratio is 1.55 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 to bond lines registered in the Securities Registrar under number 912.
| · |  | Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times.
For these purposes Net Consolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less (iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent they correspond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2020, this ratio is 0.51 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, 2020, this ratio is 1.55 times.
| · |  | 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, 2020 and 2019, the Company complies with all financial collaterals. 17.3 Derivative contract obligations Please see details in Note 22. 17.4.1 Current liabilities for leasing agreements
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  | Total
Debtor Entity |  | Creditor Entity |  |  |  | Type of |  | Effective |  | Nominal |  | Up to |  | 90 days to |  | At |  | At
Name |  | Country |  | Taxpayer ID |  | Name |  | Country |  | Currency |  | Amortization |  | Rate |  | Rate |  | 90 days |  | 1 year |  | 12.31.2020 |  | 12.31.2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração - Light ESCO |  | Brasil |  | BRL |  | Monthly |  | 13.00 | % | 12.28 | % | 166,711 |  | 531,815 |  | 698,526 |  | 839,502
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Tetra Pack |  | Brasil |  | BRL |  | Monthly |  | 7.65 | % | 7.39 | % | 61,617 |  | 147,121 |  | 208,738 |  | 360,854
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Real estate |  | Brasil |  | BRL |  | Monthly |  | 8.20 | % | 8.20 | % | 66,160 |  | 117,534 |  | 183,694 |  | 300,338
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Leão |  | Brasil |  | BRL |  | Monthly |  | 6.56 | % | 6.56 | % | 68,366 |  | 200,944 |  | 269,310 |  | 497,386
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Tetra Pak SRL |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | 20,867 |  | 62,602 |  | 83,469 |  | 132,815
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Comafi |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | 31,232 |  | 93,695 |  | 124,927 |  | 88,739
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Real estate |  | Argentina |  | ARS |  | Monthly |  | 50.00 | % | 50.00 | % | 65,656 |  | 148,249 |  | 213,905 |  | 189,320
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Systems |  | Argentina |  | USD |  | Monthly |  | 1.00 | % | 1.00 | % | 20,556 |  | 61,671 |  | 82,227 |  | 1,169,884
Vital Aguas S.A. |  | Chile |  | 76.389.720-6 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Linear |  | 7.50 | % | 7.50 | % | 289,312 |  | 882,152 |  | 1,171,464 |  | 2,198,998
Envases Central S.A. |  | Chile |  | 96.705.990-0 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Linear |  | 8.40 | % | 8.40 | % | 565,631 |  | 1,724,833 |  | 2,290,464 |  | 235,699
Paraguay Refrescos S.A. |  | Paraguay |  | 80.003.400-7 |  | Tetra Pack Ltda. Suc. Py |  | Paraguay |  | PGY |  | Monthly |  | 1.00 | % | 1.00 | % | 55,952 |  | 159,680 |  | 215,632 |  | —
Transportes Polar S.A. |  | Chile |  | 96.928.520-7 |  | Cons. Inmob. e Inversiones Limitada |  | Chile |  | UF |  | Monthly |  | 2.89 | % | 2.89 | % | 22,944 |  | 69,834 |  | 92,778 |  | —
Embotelladora Andina S.A. |  | Chile |  | 91.144.000-8 |  | Central de Restaurante Aramark Ltda. |  | Chile |  | CLP |  | Monthly |  | 1.30 | % | 1.30 | % | 20,736 |  | 62,614 |  | 83,350 |  | —
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,718,484 |  | 6,013,535
The Company maintains lease agreements on forklifts, vehicles, real estate and machinery. These leases have an average life of between one and eight years without including a renewal option in the contracts. 17.4.2 Non-current liabilities for leasing agreements, non-current
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  |
Debtor Entity |  |  |  | Creditor Entity |  |  |  | Amortization |  | Effective |  | Nominal |  | 1 year to |  | 2 years to |  | 3 years to |  | 4 years to |  | More than |  | At
Name |  | Country |  | Taxpayer ID |  | Name |  | Country |  | Currency |  | Type |  | Rate |  | Rate |  | 2 years |  | 3 years |  | 4 years |  | 5 years |  | 5 years |  | 12.31.2020
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração - Light ESCO |  | Brazil |  | BRL |  | Monthly |  | 13.0 | % | 12.28 | % | 789,334 |  | 891,946 |  | 1,007,901 |  | 1,138,928 |  | 4,827,833 |  | 8,655,942
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Tetra Pack |  | Brazil |  | BRL |  | Monthly |  | 7.65 | % | 7.39 | % | 95,856 |  | — |  | — |  | — |  | — |  | 95,856
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Real estate |  | Brazil |  | BRL |  | Monthly |  | 8.20 | % | 8.20 | % | 72,906 |  | 32,980 |  | 23,547 |  | — |  | — |  | 129,433
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Leão Alimentos e Bebidas Ltda. |  | Brazil |  | BRL |  | Monthly |  | 6.56 | % | 6.56 | % | 261,577 |  | 249,681 |  | 243,911 |  | 225,680 |  | 51,007 |  | 1,031,856
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Comafi |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | - |  | 20,867 |  | — |  | — |  | — |  | 20,867
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Tetra Pak SRL |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | - |  | 249,854 |  | — |  | 249,854 |  | 72,874 |  | 572,582
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Real estate |  | Argentina |  | ARS |  | Monthly |  | 50.00 | % | 50.00 | % | - |  | 128,930 |  | — |  | — |  | — |  | 128,930
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Real estate |  | Argentina |  | ARS |  | Monthly |  | 50.00 | % | 50.00 | % | - |  | 95,931 |  | — |  | — |  | — |  | 95,931
Vital Aguas S.A. |  | Chile |  | 76.572.588-7 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Monthly |  | 8.20 | % | 8.20 | % | 1,107,140 |  | — |  | — |  | — |  | — |  | 1,107,140
Envases Central S.A. |  | Chile |  | 76.572.588-7 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Monthly |  | 9.00 | % | 9.00 | % | 2,967,864 |  | — |  | — |  | — |  | — |  | 2,967,864
Paraguay Refrescos S.A. |  | Paraguay |  | 80.003.400-7 |  | Tetra Pack Ltda. Suc. Py |  | Paraguay |  | PGY |  | Monthly |  | 1.00 | % | 1.00 | % | - |  | 163,635 |  | — |  | — |  | — |  | 163,635
Transportes Polar S.A. |  | Chile |  | 76.413.243-2 |  | Cons. Inmob. e Inversiones Limitada |  | Chile |  | UF |  | Monthly |  | 2.89 | % | 2.89 | % | - |  | 193,789 |  | — |  | 161,551 |  | — |  | 355,340
Embotelladora Andina S.A. |  | Chile |  | 76.178.360-2 |  | Central de Restaurante Aramark Ltda. |  | Chile |  | CLP |  | Monthly |  | 1.30 | % | 1.30 | % | - |  | 13,997 |  | — |  | — |  | — |  | 13,997
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 15,339,373
17.4.3 Non-current liabilities for leasing agreements (previous year)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Maturity |  |
Debtor Entity |  | Creditor Entity |  |  |  | Amortization |  | Effective |  | Nominal |  | 1 year to |  | 2 years to |  | 3 years to |  | 4 years to |  | More than |  | At
Name |  | Country |  | Taxpayer ID |  | Name |  | Country |  | Currency |  | Type |  | Rate |  | Rate |  | 2 years |  | 3 years |  | 4 years |  | 5 years |  | 5 years |  | 12.31.2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Cogeração - Light ESCO |  | Brazil |  | BRL |  | Monthly |  | 13.0 | % | 12.28 | % | 948,466 |  | 1,071,766 |  | 1,211,096 |  | 1,368,538 |  | 8,101,730 |  | 12,701,596
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Tetra Pack |  | Brazil |  | BRL |  | Monthly |  | 7.65 | % | 7.39 | % | 271,264 |  | 111,005 |  | — |  | — |  | — |  | 382,269
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Real estate |  | Brazil |  | BRL |  | Monthly |  | 8.20 | % | 8.20 | % | 97,784 |  | 9,144 |  | — |  | — |  | — |  | 106,928
Rio de Janeiro Refrescos Ltda. |  | Brazil |  | Foreign |  | Leão Alimentos e Bebidas Ltda. |  | Brazil |  | BRL |  | Monthly |  | 6.56 | % | 6.56 | % | 365,671 |  | 355,172 |  | 339,020 |  | 331,185 |  | 375,688 |  | 1,766,736
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Tetra Pak SRL |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | — |  | 398,442 |  | — |  | 343,104 |  | — |  | 741,546
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Banco Comafi |  | Argentina |  | USD |  | Monthly |  | 12.00 | % | 12.00 | % | — |  | 110,924 |  | — |  | — |  | — |  | 110,924
Embotelladora del Atlántico S.A. |  | Argentina |  | Foreign |  | Real estate |  | Argentina |  | ARS |  | Monthly |  | 50.00 | % | 50.00 | % | — |  | 55,222 |  | — |  | — |  | — |  | 55,222
Vital Aguas S.A. |  | Chile |  | 76.572.588-7 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Monthly |  | 8.20 | % | 8.20 | % | 2,242,278 |  | — |  | — |  | — |  | — |  | 2,242,278
Envases Central S.A. |  | Chile |  | 76.572.588-7 |  | Coca Cola del Valle New Ventures S.A. |  | Chile |  | CLP |  | Monthly |  | 9.0 | % | 9.0 | % | 4,947,745 |  | — |  | — |  | — |  | — |  | 4,947,745
Paraguay Refrescos S.A. |  | Paraguay |  | 80.003.400-7 |  | Tetra Pack Ltda. Suc. Py |  | Paraguay |  | PGY |  | Monthly |  | 1.00 | % | 1.00 | % | 399,456 |  | — |  | — |  | — |  | — |  | 399,456
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 23,454,700
Leasing agreement obligations are not subject to financial restrictions for the reported periods.

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