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Borrowings
 12 Months Ended
Dec. 31, 2021
Financial Instruments [Abstract]  
Borrowings Borrowings
 20212020
Non-current  
Senior Notes497,455 497,009 
Bank borrowings208,032 316,455 
 705,487 813,464 
Current  
Senior Notes8,250 8,250 
Bank overdrafts11,768 50,447 
Bank borrowings92,146 98,929 
 112,164 157,626 
Total borrowings817,651 971,090 
 
As of December 31, 2021, total bank borrowings include collateralized liabilities of US$70,221 (2020: US$97,999). 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. As of December 31, 2021 and 2020 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:
 20212020
Fixed rate:  
Less than 1 year104,349 116,113 
Between 1 and 2 years12,503 52,175 
Between 2 and 3 years12,500 39,844 
Between 3 and 4 years— 12,500 
More than 5 years497,455 497,009 
 626,807 717,641 
Variable rate:  
Less than 1 year7,815 41,513 
Between 1 and 2 years5,075 32,870 
Between 2 and 3 years31,754 6,035 
Between 3 and 4 years29,255 5,154 
Between 4 and 5 years71,045 28,334 
More than 5 years45,900 139,543 
 190,844 253,449 
 817,651 971,090 
 
Borrowings incurred by the Group’s subsidiaries in Brazil are repayable at various dates between January 2022 and November 2027 and bear either fixed interest rates ranging from 2.50% to 7.95% per annum or variable rates based on base-rates plus spreads ranging from 5.16% to 14.73% per annum. As of December 31, 2021 and 2020 there are no borrowings subject to LIBOR (six months).
 
Borrowings incurred by the Group’s subsidiaries in Argentina are repayable at various dates between January 2022 and June 2028 and bear either fixed interest rates ranging from —% and 6.2% 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 34% to 39% per annum for those borrowings denominated in Argentine pesos.
Brazilian Subsidiaries
 
The main loans of the Group’s Brazilian Subsidiaries are:
BankGrant date
Nominal
amount
Capital outstanding as of December 31Maturity dateAnnual interest rate
20212020
(In millions)Millions of
Reais
Millions of
equivalent
Dollars
Millions of
equivalent
Dollars
Banco Do Brasil (FCO) (1)October 2012R$130.0 R$17.7 3.17 7.08 November 2022
2.94% minus 15% of performance bonus
Itau BBA (FINAME) (2) December 2012R$45.9 R$2.1 0.37 1.40 December 20222.50%
Banco do Brasil / Itaú BBA (FINEM) (3)September 2013R$273.0 R$26.5 4.75 9.51 January 20237.29%
BNDES (FINEM) (4)November 2013R$215.0 R$29.5 5.28 10.66 January 20234.63%
Certificados Recebíveis do Agronegócio (CRA)December 2019R$467.0 R$467.0 83.68 77.92 November 2027
3.80% + IPCA
DebentureDecember 2020R$447.0 R$447.0 80.10 14.43 December 2026
4.24% + IPCA
ING Bank N.V (5)October 2018US$75.0 US$— — 75.0 October 20236.33%
 
(1)Collateralized by (i) a first degree mortgage of the Carmen farm; and (ii) liens over the Ivinhema mill and equipment.
(2)Collateralized by (i) a first degree mortgage of the Carmen farm; (ii) liens over the Ivinhema mill and equipment; and (iii) long term power purchase agreements (PPA).
(3)Collateralized by (i) liens over the Ivinhema mill and equipment; and (ii) power sales contracts.
(4)Collateralized by long term power purchase agreement (PPA).
(5)Canceled during 2021.
  
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 the company 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.
 
As of December 31, 2021 and 2020 the Group was in compliance with all financial covenants.

Argentinian Subsidiaries

The main loans of the Group’s Argentinian Subsidiaries are:
BankGrant dateNominal
amount		Capital outstanding as of
December 31		Maturity dateAnnual interest rate
20212020
(In millions)(In millions)(In millions)
Rabobank (1)2018US$50.037.5050.00June, 20246.17%
IFC Tranche A (2)2020US$12.612.3512.60June, 2028
4% plus LIBOR
IFC Tranche B (2)2020US$9.49.229.41June, 2028
4% plus LIBOR
 
(1) Collateralized by the pledged of the shares of Dinaluca S.A., Compañía Agroforestal S.M.S.A. and Girasoles del Plata S.A.
(2) 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 2020, US$22 million has been received. In December 2021, we entered into an amendment reducing the total amount to USD 60 million, that the group could request the withdrawal until June, 2022. If the Company withdraw the full amount, the rate would be reduced to LIBOR + 3%
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.
 
As of December 31 2021 and 2020 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 2021 and 2020 equals US$517.3 million and US$528 million, 103.47% 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, 2021 and 2020 is as follow:

 20212020
Amount at the beginning of the year971,090 968,280 
Proceeds from long term borrowings30,972 116,015 
Payments of long term borrowings(108,425)(34,750)
Proceeds from short term borrowings286,115 207,217 
Payments of short term borrowings(328,463)(233,540)
Payments of interest (1)(49,592)(57,914)
Accrued interest48,791 52,800 
Exchange differences, inflation and translation, net(52,693)(55,612)
Others 19,856 8,594 
Amount at the end of the year817,651 971,090 
(1) Excludes payment of interest related to trade and other payables.