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Borrowings
 12 Months Ended
Dec. 31, 2022
Financial Instruments [Abstract]  
Borrowings Borrowings
 20222021
Non-current  
Senior Notes497,901 497,455 
Bank borrowings230,082 208,032 
 727,983 705,487 
Current  
Senior Notes8,250 8,250 
Bank overdrafts48,058 11,768 
Bank borrowings223,461 92,146 
 279,769 112,164 
Total borrowings1,007,752 817,651 
 
As of December 31, 2022, total bank borrowings include collateralized liabilities of US$188,058 (2021: US$70,221). These loans are mainly collateralized by property, plant and equipment, sugarcane plantations, sugar export contracts, shares of certain subsidiaries of the Group and US Treasury Bills.
Notes 2027

On September 21, 2017, the Company issued senior notes (the “Notes”) for a total amount of US$500 million, at an annual fixed 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 December 31, 2022, 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, 2022 and 2021 the Group was in compliance with these financial covenants.

Debt maturity breakdown

The maturity of the Group's borrowings and the Group's exposure to fixed and variable interest rates is as follows:
 20222021
Fixed rate:  
Less than 1 year272,900 104,349 
Between 1 and 2 years27,720 12,503 
Between 2 and 3 years2,222 12,500 
Between 3 and 4 years— — 
More than 5 years497,901 497,455 
 800,743 626,807 
Variable rate:  
Less than 1 year6,869 7,815 
Between 1 and 2 years35,355 5,075 
Between 2 and 3 years32,851 31,754 
Between 3 and 4 years80,115 29,255 
Between 4 and 5 years50,211 71,045 
More than 5 years1,608 45,900 
 207,009 190,844 
 1,007,752 817,651 
 
Borrowings incurred by the Group’s subsidiaries in Brazil are repayable at various dates between January 2023 and November 2027 and bear either fixed interest rates ranging from 2.00% to 13.23% per annum or variable rates based on base-rates plus spreads ranging from 8.54% to 16.29% per annum. As of December 31, 2022 and 2021 there are no borrowings subject to LIBOR (six months).
 
Borrowings incurred by the Group’s subsidiaries in Argentina are repayable at various dates between December 2022 and June 2028 and bear either fixed interest rates ranging from 0.0% and 9.2% 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 64.0% to 71.15% 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
20222021
(In millions)Millions of
Reais
Millions of
equivalent
Dollars
Millions of
equivalent
Dollars
Banco do Brasil / Itaú BBA (FINEM) (1)September 2013R$273.0 R$273.0 52.32 4.75 January 20234.68%
Certificados Recebíveis do Agronegócio (CRA)December 2019R$400.0 R$400.0 76.66 83.68 November 2027
3.80% + IPCA
DebêntureDecember 2020R$400.0 R$400.0 76.66 80.10 December 2026
4.24% + IPCA
Banco do Brasil (CCB)December 2020R$30.0 R$30.0 5.75 5.48 January 2024
CDI + 2.32%
Banco Itaú BBA (NCR)April 2022R$20.0 R$20.0 3.83 — March 202413.23%
 

(1)Collateralized by (i) liens over the Ivinhema mill and equipment; and (ii) power sales 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 the Brazilian subsidiaries 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, 2022 and 2021 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
20222021
(In millions)(In millions)(In millions)
Rabobank (1)2018US$50.025.0037.50June, 20246.17%
IFC Tranche A (2)2020US$12.610.6612.35June, 2028
4% plus LIBOR
IFC Tranche B (2)2020US$9.47.969.22June, 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 Horquetas, and La Rosa farms, which are 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$22 million has been received. In December 2021, we entered into an amendment reducing the total amount to US$ 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. Publication of LIBOR would be ceased at the end of June 2023. During April 2023, it was agreed with IFC to use Secured Overnight Financing Rate (SOFR), replacing the LIBOR since July 1st, 2023. All the other provisions of the loan agreement continue in full force and effect.

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, 2022 and 2021 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, 2022 and 2021 equals US$474.3 million and US$517.5 million, 94.86% and 103.49% 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, 2022 and 2021 is as follow:

 20222021
Amount at the beginning of the year817,651 971,090 
Proceeds from long term borrowings41,082 30,972 
Payments of long term borrowings(14,012)(108,425)
Proceeds from short term borrowings347,928 286,115 
Payments of short term borrowings(192,648)(328,463)
Payments of interest (1)(33,189)(49,592)
Accrued interest51,596 48,791 
Acquisition of subsidiaries (Note 21)17,738 — 
Exchange differences, inflation and translation, net(30,489)(52,693)
Others 2,095 19,856 
Amount at the end of the year1,007,752 817,651 
(1) Excludes payment of interest related to trade and other payables.