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Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2020
Financial Instruments [Abstract] |
Borrowings | Borrowings
| 2020 |  | 2019
Non-current |  |  |
Senior Notes | 497,009 |  |  | 496,564 |
Bank borrowings | 316,455 |  |  | 283,638 |
| 813,464 |  |  | 780,202 |
Current |  |  |
Senior Notes | 8,250 |  |  | 8,250 |
Bank overdrafts | 50,447 |  |  | 27 |
Bank borrowings | 98,929 |  |  | 179,801 |
| 157,626 |  |  | 188,078 |
Total borrowings | 971,090 |  |  | 968,280 |
As of December 31, 2020, total bank borrowings include collateralized liabilities of US$ 97,999 (2019: US$ 210,525). 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. 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. During 2020 and 2019 the Group was in compliance with these financial covenants. The maturity of the Group's borrowings and the Group's exposure to fixed and variable interest rates is as follows:
| 2020 |  | 2019
Fixed rate: |  |  |
Less than 1 year | 116,113 |  |  | 120,154 |
Between 1 and 2 years | 52,175 |  |  | 46,247 |
Between 2 and 3 years | 39,844 |  |  | 55,453 |
Between 3 and 4 years | 12,500 |  |  | 40,725 |
Between 4 and 5 years | — |  |  | 10,331 |
More than 5 years | 497,009 |  |  | 595,550 |
| 717,641 |  |  | 868,460 |
Variable rate: |  |  |
Less than 1 year | 41,513 |  |  | 67,924 |
Between 1 and 2 years | 32,870 |  |  | 20,007 |
Between 2 and 3 years | 6,035 |  |  | 7,197 |
Between 3 and 4 years | 5,154 |  |  | 4,692 |
Between 4 and 5 years | 28,334 |  |  | — |
More than 5 years | 139,543 |  |  | — |
| 253,449 |  |  | 99,820 |
| 971,090 |  |  | 968,280 |
Borrowings incurred by the Group’s subsidiaries in Brazil are repayable at various dates between January 2021 and November 2027 and bear either fixed interest rates ranging from 2.50% to 7.95% per annum or variable rates based on LIBOR or other specific base-rates plus spreads ranging from 1.62% to 4.24% per annum. At December 31, 2020 there are no borrowings subject to LIBOR (six months). At December 2019, LIBOR (six months) was 2.88%. Borrowings incurred by the Group´s subsidiaries in Argentina are repayable at various dates between January 2021 and June 2028 and bear either fixed interest rates ranging from 2.75% and 7.0% per annum or variable rates based on LIBOR or other specific base-rates plus spreads of 4.0% for those borrowings denominated in U.S. Dollar, and a fixed interest rates ranging from 30% to 39% 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
2020 | 2019
(In millions) | Millions of Reais | Millions of equivalent Dollars | Millions of equivalent Dollars
Banco Do Brasil (1) | October 2012 | R$ | 130.0 |  | R$ | 36.8 |  | 7.08 |  | 13.4 |  | November 2022 | 2.94% minus 15% of performance bonus
Itau BBA FINAME Loan (2) | December 2012 | R$ | 45.9 |  | R$ | 7.3 |  | 1.40 |  | 1.6 |  | December 2022 | 2.50%
Banco do Brasil / Itaú BBA Finem Loan (3) | September 2013 | R$ | 273.0 |  | R$ | 49.4 |  | 9.51 |  | 16.5 |  | January 2023 | 6.83%
BNDES Finem Loan (4) | November 2013 | R$ | 215.0 |  | R$ | 55.4 |  | 10.66 |  | 20.8 |  | January 2023 | 3.75%
ING Bank N.V. (5) | October 2018 | US$ | 75.0 |  |  | — |  | 75.00 |  | 75.0 |  | October 2023 | 6.33%
Certificados Recebíveis do Agronegócio (CRA) | December 2019 | R$ | 405.0 |  | R$ | 405.0 |  | 77.92 |  | 99.2 |  | November 2027 | 3.80% + IPCA
Banco do Brasil NCE Loan | March 2020 | R$ | 150.0 |  | R$ | 75.0 |  | 14.43 |  | — |  | March 2021 | 4.14%
Debênture Loan (6) | December 2020 | R$ | 403.2 |  | R$ | 403.2 |  | 77.59 |  | — |  | December 2026 | 4.24% + IPCA
(1)Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; and (ii) liens over the Ivinhema mill and equipment. (2)Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; and (ii) liens over the Ivinhema mill and equipment. (3)Collateralized by (i) a first degree mortgage of the Carmen (Santa Agua) farm; (ii) liens over the Ivinhema mill and equipment; and (iv) long term power purchase agreements (PPA). (4)Collateralized by (i) liens over the Ivinhema mill and equipment; and (ii) power sales contracts. (5)Collateralized by sales contracts. (6)Collateralized by fiduciary assignment of energy contracts. In December 2019, Adecoagro Vale do Ivinhema placed R$ 400.0 million in Certificados de Recebíveis do Agronegócio (CRA) adjustable by the IPCA (Brazilian official inflation rate), maturing in November 2027 and bearing an interest 3.80% per annum. This debt was issued with no guarantee. The above mentioned loans, except the CRA, 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 2020 and 2019 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
2020 | 2019
(In millions) | (In millions) | (In millions)
IFC Tranche A (1) | 2016 | US$25.0 | — | 18.18 | September, 2023 | 4% plus LIBOR
IFC Tranhce B (1) | 2016 | US$25.0 | — | 14.29 | September, 2021 | 4% plus LIBOR
Rabobank (2) | 2018 | US$50.0 | 50.00 | 50.00 | June, 2024 | 6.17%
IFC Tranche A (3) | 2020 | US$12.6 | 12.60 | — | June, 2028 | 4% plus LIBOR
IFC Tranche B (3) | 2020 | US$9.4 | 9.41 | — | June, 2028 | 4% plus LIBOR
(1) Collateralized by a US$ 113 million mortgage over Carmen farm, which is property of Adeco Agropecuaria S.A. (2) Collateralized by the pledged of the shares of Dinaluca S.A., Compañía Agroforestal S.M.S.A. and Girasoles del Plata S.A. (3) Collateralized by a US$ 241.8 million mortgage over Carmen, Abolengo, San Carlos, Las Horquertas, and La Rosa farm, which is property of Adeco Agropecuaria S.A. A US$ 35.7 million mortgage over El Meridiano farm, which is property of Pilaga S.A. And a US$ 44.3 million mortgage over Santa Lucia farm, which is property of Bañados del Salado S.A. Loan with International Finance Corporation (IFC) In June 2020, our Argentine subsidiaries, Adeco Agropecuaria S.A., Pilagá S.A. and L3N S.A. entered into a US$100 million loan agreement with International Finance Corporation (IFC), member of the World Bank Group. The loan's tenor is eight years, including a two-year grace period, with a rate of LIBOR + 4%. In October, US$ 22 million has been received. The loan contains customary financial covenants and restrictions which require us to meet pre-defined financial ratios, among other restrictions. 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 2020 and 2019 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 subject to fix rate do not significant differ from their fair value. The fair value (level 2) of the notes as of December 31 2019 and 2020 equals US$ 497 million and US$ 528 million, 99.49% and 105.65% of the nominal amount, respectively. 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, 2020 and 2019 is as follow:
| 2020 |  | 2019
Amount at the beginning of the year | 968,280 |  |  | 862,116 |
Proceeds from long term borrowings | 116,015 |  |  | 108,271 |
Payments of long term borrowings | (34,750) |  |  | (101,826) |
Proceeds from short term borrowings | 207,217 |  |  | 193,977 |
Payments of short term borrowings | (233,540) |  |  | (131,521) |
Payments of interest (1) | (57,914) |  |  | (51,529) |
Accrued interest | 52,800 |  |  | 53,277 |
Acquisition of subsidiaries | — |  |  | 12,823 |
Exchange differences, inflation and translation, net | (55,612) |  |  | 7,284 |
Others | 8,594 |  |  | 15,408 |
Amount at the end of the year | 971,090 |  |  | 968,280 |
(1) Excludes payment of interest related to trade and other payables.

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