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BORROWINGS AND FINANCING
 12 Months Ended
Dec. 31, 2023
Notes and other explanatory information [abstract]  
BORROWINGS AND FINANCING

 

13.BORROWINGS AND FINANCING

 

The balances of borrowings and financing that, recorded at amortized cost are as follows:

 

                 
                  Consolidated
      Current Liabilities     Non-current Liabilities 
      12/31/2023   12/31/2022   12/31/2023   12/31/2022
                   
Foreign Debt                  
Floating Rates in USD                  
Prepayment     548,230   1,571,208     6,576,696   5,474,359
Fixed Rates in USD                  
Bonds, Perpetual bonds, Facility, CCE and ACC     2,079,972   1,189,717   17,815,926    16,790,284
Intercompany             
Fixed interest in EUR                  
Intercompany             
Facility     327,873    62,187     114,227     166,302
      2,956,075   2,823,112   24,506,849    22,430,945
                   
Debt agreements in Brazil                  
Floating Rate Securities in R$:                  
BNDES/FINAME/FINEP, Debentures, NCE and CCB     4,745,721   2,446,840   13,265,267    13,740,051
      4,745,721   2,446,840   13,265,267    13,740,051
Total Borrowings and Financing     7,701,796   5,269,952   37,772,116    36,170,996
Transaction Costs and Issue Premiums      (88,429)   (76,316)    (526,408)    (445,890)
Total Borrowings and Financing + Transaction cost     7,613,367   5,193,636   37,245,708   35,725,106

 

13.a)Movements of borrowings and financing

 

The following table shows amortization and funding during the year:

 

       
        Consolidated
    12/31/2023   12/31/2022
Opening balance     40,918,742    32,507,522
New debts     15,753,501    20,248,223
Repayment     (9,892,344)   (10,782,858)
Payments of charges     (3,428,721)     (2,315,586)
Accrued charges (note 28)   3,664,313   2,595,011
Consolidation of companies        81,978
Others (1)     (2,156,416)     (1,415,548)
Closing balance     44,859,075    40,918,742
(1)Including unrealized exchange and monetary variations and funding cost.

 

 

In 2023, the Company entered into new debt agreements and amortized borrowings and financing as shown below:

 

               
                Consolidated
                12/31/2023
Nature   New debts   Maturities   Repayment   Interest payment
Pre-Payment     1,890,333    2023 to 2035    (1,264,949)     (450,272)
Bonds, ACC, CCE and Facility      8,106,514    2023 to 2025    (4,728,468)     (999,626)
BNDES/FINAME/FINEP, Debentures, NCE, Facility and CCB     5,756,654    2023 to 2038    (3,898,927)     (1,978,823)
     15,753,501       (9,892,344)     (3,428,721)

 

13.b)Maturities of borrowings and financing presented in current and non-current liabilities

 

           
            Consolidated
            12/31/2023
    Borrowings and financing in foreign currency   Borrowings and financing in national currency   Total
Average rate   in Dólar 6.79%in Euro 5.44%   in Real 13.68%  
2024    2,956,075    4,746,339    7,702,414
2025    3,537,254    1,786,460    5,323,714
2026    2,214,220    2,588,940    4,803,160
2027    907,498    2,584,111    3,491,609
2028    6,860,953    1,383,493    8,244,446
2029 to 2031    7,964,495    2,112,635     10,077,130
After 2032    3,022,429    2,809,010    5,831,439
      27,462,924     18,010,988     45,473,912

 

·      Covenants

 

The Company debt agreements provide for the fulfillment of certain non-financial obligations, as well as the maintenance of certain parameters and performance indicators, such as disclosure of its audited financial statements according to regulatory deadlines or payment of commission for risk assumption, if the indicator of net debt to EBITDA reaches the levels foreseen in those agreements.

 

As of December 31, 2023, the Company is compliant with the financial and non-financial obligations (covenants) of its existing agreements.

 

 

 

Accounting Policy

 

Borrowings and financing are initially recognized at fair value, net of transaction costs and subsequently measured at amortized cost using the effective interest rate and charges methods. Interest, commissions, and possible financial charges are recorded pro-rata on an accrual basis.