Borrowings and debt

12 Months Ended

Dec. 31, 2017

12.

Borrowings and debt

12.1

Short-term borrowings and debt

The breakdown of short-term (original maturity of less than one year) borrowings and debt, together with contractual interest rates, is as follows:

	December 31, 2017			December 31, 2016
Short-term Borrowings:
At fixed interest rates		429,069			788,075
At floating interest rates		633,154			657,000
Total borrowings		1,062,223			1,445,075
Short-term Debt:
At fixed interest rates		10,500			25,000
At floating interest rates		-			-
Total debt		10,500			25,000
Total short-term borrowings and debt		1,072,723			1,470,075

Average outstanding balance during the year		710,021			1,348,230
Maximum balance at any month-end		1,072,723			1,876,322
Range of fixed interest rates on borrowing and debt in U.S. dollars		1.60% to 1.95	%		1.10% to 1.50	%
Range of floating interest rates on borrowing in U.S. dollars		1.77% to 2.08	%		1.14% to 1.48	%
Range of fixed interest rates on borrowing in Mexican pesos		7.92	%		6.16	%
Range of floating interest rate on borrowing in Mexican pesos		7.68% to 7.89	%		5.72	%
Weighted average interest rate at end of the year		2.16	%		1.30	%
Weighted average interest rate during the year		1.66	%		1.10	%

The balances of short-term borrowings and debt by currency, is as follows:

	December 31, 2017		December 31, 2016
Currency
US dollar		1,044,500		1,470,000
Mexican peso		28,223		75
Total		1,072,723		1,470,075

12.2

Long-term borrowings and debt

Borrowings consist of long-term and syndicated loans obtained from international banks. Debt instruments consist of public and private issuances under the Bank's Euro Medium Term Notes Program (“EMTN”) as well as public issuances in the Mexican market. The breakdown of borrowings and long-term debt (original maturity of more than one year), together with contractual interest rates gross of prepaid commission of $4,211 and $5,133 as of December 31, 2017 and 2016, respectively, is as follows:

	December 31, 2017			December 31, 2016
Long-term Borrowings:
At fixed interest rates with due dates from October 2017 to February 2022		44,011			61,148
At floating interest rates with due dates from November 2017 to March 2021		379,000			631,326
Total borrowings		423,011			692,474
Long-term Debt:
At fixed interest rates with due dates from March 2018 to March 2024		532,305			921,479
At floating interest rates with due dates from January 2018 to March 2022		187,739			167,918
Total long-term debt		720,044			1,089,397
Total long-term borrowings and debt		1,143,055			1,781,871
Less: Prepaid commission		(4,211)			(5,133)
Total long-term borrowings and debt, net		1,138,844			1,776,738

Net average outstanding balance during the year		1,477,788			1,874,435
Maximum outstanding balance at any month – end		2,010,078			2,054,138
Range of fixed interest rates on borrowing and debt in U.S. dollars		1.35% to 3.25	%		2.85% to 3.75	%
Range of floating interest rates on borrowing and debt in U.S. dollars		2.61% to 3.01	%		1.66% to 2.49	%
Range of fixed interest rates on borrowing in Mexican pesos		4.89% to 9.09	%		4.75% to 8.90	%
Range of floating interest rates on borrowing and debt in Mexican pesos		7.99% to 8.00	%		6.19% to 6.54	%
Range of fixed interest rate on debt in Japanese yens		0.46% to 0.81	%		0.46% to 0.81	%
Range of fixed interest rate on debt in Euros		3.75	%		3.75	%
Range of fixed interest rate on debt in Australian dollar		3.33	%		3.33	%
Weighted average interest rate at the end of the year		3.60	%		2.98	%
Weighted average interest rate during the year		3.43	%		2.84	%

The balances of long-term borrowings and debt by currency, is as follows:

	December 31, 2017		December 31, 2016
Currency
US dollar		753,981		1,392,995
Mexican peso		206,750		219,347
Japanese yen		98,711		95,238
Euro		60,178		52,574
Australian dollar		23,435		21,717
Total		1,143,055		1,781,871

The Bank's funding activities include: (i) EMTN, which may be used to issue notes for up to $2.3 billion, with maturities from 7 days up to a maximum of 30 years, at fixed or floating interest rates, or at discount, and in various currencies. The notes are generally issued in bearer or registered form through one or more authorized financial institutions; (ii) Short-and Long-Term Notes “Certificados Bursatiles” Program (the “Mexico Program”) in the Mexican local market, registered with the Mexican National Registry of Securities maintained by the National Banking and Securities Commission in Mexico (“CNBV”, for its acronym in Spanish), for an authorized aggregate principal amount of 10 billion Mexican pesos with maturities from one day to 30 years.

Some borrowing agreements include various events of default and covenants related to minimum capital adequacy ratios, incurrence of additional liens, and asset sales, as well as other customary covenants, representations and warranties. As of December 31, 2017 the Bank was in compliance with all covenants.

The future payments of long-term borrowings and debt outstanding as of December 31, 2017, are as follows:

Payments	Outstanding

2018		139,070
2019		357,434
2020		375,592
2021		200,731
2022		10,050
2024		60,178
		1,143,055