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Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2017
Financial Instruments [Abstract] |
Borrowings | Borrowings
| 2017 |  | 2016
Non-current |  |  |  |  |
Senior Notes | 495,707 |  |  | — |
Bank borrowings | 167,315 |  |  | 430,202 |
Obligations under finance leases | 38 |  |  | 102 |
| 663,060 |  |  | 430,304 |
Current |  |  |  |  |
Senior Notes | 8,250 |  |  | — |
Bank overdrafts | 6,214 |  |  | 90 |
Bank borrowings | 140,367 |  |  | 204,923 |
Obligations under finance leases | 67 |  |  | 79 |
| 154,898 |  |  | 205,092 |
Total borrowings | 817,958 |  |  | 635,396 |
As of December 31, 2017, total bank borrowings include collateralized liabilities of US$ 637,306 (2016: US$ 525,663). These loans are mainly collateralized by property, plant and equipment, sugarcane plantations, sugar export contracts and shares of certain subsidiaries of the Group. Notes 2027 On September 21, 2017, the Company issued senior notes (the “Notes”) for US$ 500 million, at an annual nominal rate of 6%. The Notes will mature on September 21, 2027. Interest on the Notes are payable semi-annually in arrears on March 21 and September 21 of each year, beginning on March 21, 2018. The total proceeds nets of expenses was US$ 495.7 million. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of our current and future subsidiaries. As of the Issue Date, Adeco Agropecuaria S.A., Adecoagro Brasil Participações S.A., Adecoagro Vale do Ivinhema S.A., Pilagá S.A. and Usina Monte Alegre Ltda. are the only Subsidiary Guarantors. The Notes contain customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions. The Group was in compliance with the related covenants. The maturity of the Group's borrowings (excluding obligations under finance leases) and the Group's exposure to fixed and variable interest rates is as follows:
| 2017 |  | 2016
Fixed rate: |  |  |  |  |
Less than 1 year | 132,998 |  |  | 67,682 |
Between 1 and 2 years | 35,762 |  |  | 43,630 |
Between 2 and 3 years | 20,097 |  |  | 40,047 |
Between 3 and 4 years | 20,130 |  |  | 21,857 |
Between 4 and 5 years | 16,310 |  |  | 21,116 |
More than 5 years | 495,754 |  |  | 20,239 |
| 721,051 |  |  | 214,571 |
Variable rate: |  |  |  |  |
Less than 1 year | 21,833 |  |  | 137,331 |
Between 1 and 2 years | 22,871 |  |  | 150,517 |
Between 2 and 3 years | 17,945 |  |  | 81,947 |
Between 3 and 4 years | 18,215 |  |  | 18,457 |
Between 4 and 5 years | 11,164 |  |  | 18,309 |
More than 5 years | 4,774 |  |  | 14,083 |
| 96,802 |  |  | 420,644 |
| 817,853 |  |  | 635,215 |
Borrowings incurred by the Group’s subsidiaries in Brazil are repayable at various dates between January 2018 and September 2024 and bear either fixed interest rates ranging from 2.5% to 9.0% per annum or variable rates based on LIBOR or other specific base-rates plus spreads ranging from 4.13% to 17.52% per annum. At December 31, 2017 LIBOR (six months) was 1,84% (2016: 1.32%). Borrowings incurred by the Group´s subsidiaries in Argentina are repayable at various dates between January 2018 and September 2024 and bear either fixed interest rates ranging from 6.11% and 7.00% per annum for those borrowings denominated in US dollar, and a fixed interest rate ranging from 9.90% and 28.75% per annum for those borrowings denominated in Argentine pesos. Brazilian Subsidiaries The main loans of the Group’s Brazilian Subsidiaries are:
Bank | Grant date | Nominal amount | Capital outstanding as of December 31 | Maturity date | Annual interest rate
2017 | 2016
(In millions) | Millions of Reais | Millions of equivalent Dollars | Millions of equivalent Dollars
Banco Do Brasil (1) | October 2012 | R$ | 130.0 |  | R$ | 91.3 |  | 27.6 |  | 33.7 |  | November 2022 | 2.94% with 15% of bonus performance
Itau BBA FINAME Loan (2) | December 2012 | R$ | 45.9 |  | R$ | 25.2 |  | 7.6 |  | 9.3 |  | December 2022 | 2.50%
Itau BBA | March 2013 | R$ | 75.0 |  | R$ | - |  | - |  | 5.8 |  | - | CDI + 3.20%
Banco do Brasil / Itaú BBA Finem Loan (3) | September 2013 | R$ | 273.0 |  | R$ | 176.5 |  | 53.4 |  | 67.3 |  | January 2023 | 6.77%
BNDES Finem Loan (4) | November 2013 | R$ | 215.0 |  | R$ | 136.9 |  | 41.4 |  | 50.3 |  | January 2023 | 3.75%
ING / Rabobank / ABN / HSBC / Credit Agricole / Caixa Geral / Galena (7) | January 2015 | US$ | 160.0 |  |  | - |  | - |  | 98.0 |  | - | LIBOR 3M plus 4.40%
ING / Rabobank / Bladex / Credit Agricole / Votorantim / ABN (7) | August 2015 | US$ | 110.0 |  |  | - |  | - |  | 110.0 |  | - | LIBOR 3M plus 4.65%
Rabobank (7) | February 2016 | US$ | 40.0 |  |  | - |  | - |  | 40.0 |  | - | LIBOR 3M plus 3.50%
Tokyo-Mitsubishi (5) | August 2016 | US$ | 30.0 |  |  | - |  | 30.0 |  | 30.0 |  | August 2019 | 6.35%
Bradesco (7) | July 2016 | R$ | 90.0 |  |  | - |  | - |  | 27.6 |  | - | CDI + 2.10%
Votorantim (6) | July 2016 | US$ | 15.0 |  |  | - |  | 10.0 |  | 15.0 |  | June 2019 | LIBOR 3M plus 4.60%
(1) | Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; (ii) a first degree mortgage of the Sapálio farm; (iii) a first degree mortgage of the Takuare farm; and (iv) liens over the Ivinhema mill and equipment.
(2) | Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; (ii) a first degree mortgage of the Sapálio farm; (iii) a first degree mortgage of the Takuare farm; and (iv) liens over the Ivinhema mill and equipment.
(3) | Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; (ii) a first degree mortgage of the Sapálio farm; (iii) a first degree mortgage of the Takuare farm; (iv) liens over the Ivinhema mill and equipment; and (v) power sales contract.
(4) | Collateralized by (i) liens over the Ivinhema mill and equipment; and (ii) power sales contracts.
(5) | Collateralized by sales contracts.
(6) | Collateralized by (i) power sales contract and (ii) sales contracts.
(7) | These loans were prepaid in 2017, with the proceeds of the Notes 2027.
The above mentioned loans contain certain customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions, as well as restrictions on the payment of dividends. These financial ratios are measured considering the statutory financial statements of the Brazilian Subsidiaries. During 2017 and 2016 the Group was in compliance with all financial covenants. Argentinian Subsidiaries The main loans of the Group’s Argentinian Subsidiaries are:
Bank | Grant date | Nominal amount | Capital outstanding as of December 31 | Maturity date | Annual interest rate
2017 | 2016
(In millions) | (In millions) | (In millions)
IDB Tranche A (1) | Feb-09 | USD 20 | US$3.1 | US$6.2 | Nov-18 | 6.11% per annum
IFC Tranche A (2) | Dec-16 | USD 25 | US$24.67 | US$25.00 | Sep-21 | 4.3% plus LIBOR
IFC Tranche B (2) | Dec-16 | USD 25 | US$24.93 | US$25.00 | Sep-23 | 4% plus LIBOR
(1): Collateralized by property, plant and equipment with a net book value of US$ 24.77 million, by a mortgage over (i) Carmen and La Rosa farms which are property of Adeco Agropecuaria S.A. and (ii) El Meridiano farm which is the property of Pilagá S.A. (2): Collateralized by a US$ 75 million mortgage over Carmen farm, which is property of Adeco Agropecuaria S.A. The Group entered into a floating to fix interest rate forward swap, fixing LIBOR at 1.25%, effective May 2012. The above mentioned loans contain certain customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions, as well as restrictions on the payment of dividends. These financial ratios are measured considering the statutory financial statements of the Argentinian Subsidiaries. During 2017 and 2016 the Group was in compliance with all financial covenants. The carrying amount of short-term borrowings is approximate its fair value due to the short-term maturity. Long term borrowings subject to variable rate approximate their fair value.The fair value of long-term borrowings, including the notes, subject to fix rate do not significant differ from their fair value. The breakdown of the Group´s borrowing by currency is included in Note 2 - Interest rate risk. Evolution of the Group's borrowings as December 31, 2017 and 2016 is as follow:
| 2017 |  | 2016
Amount at the beginning of the year | 635,396 |  |  | 723,339 |
Issuance of senior notes | 495,678 |  |  | — |
Proceeds from long term loans | 232,433 |  |  | 167,385 |
Payments of long term loans | (602,700 | ) |  | (277,913 | )
Proceeds from short term loans | 106,730 |  |  | 257,395 |
Payments of short term loans | (64,787 | ) |  | (272,033 | )
Payments of interest | (39,118 | ) |  | (45,473 | )
Accrued interest | 51,005 |  |  | 46,470 |
Exchange differences and translation, net | (4,588 | ) |  | 32,583 |
Others | 7,909 |  |  | 3,643 |
Amount at the end of the year | 817,958 |  |  | 635,396 |

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