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Borrowings
 12 Months Ended
Dec. 31, 2023
Financial Instruments [Abstract]  
Borrowings Borrowings
 20232022
Non-current  
Senior Notes498,347 497,901 
Bank borrowings199,496 230,082 
 697,843 727,983 
Current  
Senior Notes8,250 8,250 
Bank overdrafts4,386 48,058 
Bank borrowings194,470 223,461 
 207,106 279,769 
Total borrowings904,949 1,007,752 
 
As of December 31, 2023, total bank borrowings include collateralized liabilities of US$77,055 (2022: US$188,058). These loans are mainly collateralized by property, plant and equipment, sugarcane plantations, sugar export contracts, shares of certain subsidiaries of the Group and U.S. 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, 2023, 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, 2023 and 2022 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:
 20232022
Fixed rate:  
Less than 1 year117,105 272,900 
Between 1 and 2 years6,010 27,720 
Between 2 and 3 years5,508 2,222 
Between 4 and 5 years498,347 — 
More than 5 years— 497,901 
 626,970 800,743 
Variable rate:  
Less than 1 year90,001 6,869 
Between 1 and 2 years37,712 35,355 
Between 2 and 3 years91,878 32,851 
Between 3 and 4 years56,605 80,115 
Between 4 and 5 years1,783 50,211 
More than 5 years— 1,608 
 277,979 207,009 
 904,949 1,007,752 
 
Borrowings incurred by the Group’s subsidiaries in Brazil are repayable at various dates between January 2024 and September 2030 and bear either fixed interest rates ranging from 6.80% to 13.23% per annum or variable rates based on base-rates plus spreads ranging from 8.60% to 14.24% per annum.
 
Borrowings incurred by the Group’s subsidiaries in Argentina are repayable at various dates between January 2024 and June 2028 and bear either no interest rate or variable rates based on specific base-rates plus spreads of 4.4% for those borrowings denominated in U.S. Dollar, and a fixed interest rates ranging from 74.5% to 117% 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
20232022
(In millions)Millions of
Brazilian Real
Millions of
equivalent
Dollars
Millions of
equivalent
Dollars
Certificados Recebíveis do Agronegócio (CRA)December, 2019R$400.0 R$400.0 82.6 76.7 November-27
3.80% + IPCA
Debênture (1)December, 2020R$400.0 R$400.0 82.6 76.7 December-26
4.24% + IPCA
Banco do Brasil (CCB)December, 2020R$30.0 R$15.0 3.1 5.7 January-24
CDI + 2.32%
Itaú BBA (NCR)June, 2023R$40.0 R$40.0 8.3 — March 2024
CDI + 1.48%
 
(1) Collateralized by long term power purchase agreement (PPA).  

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, 2023 and 2022 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
20232022
(In millions)(In millions)(In millions)
IFC (1)2020US$20.016.3318.60June, 2028
4% plus SOFR
 
(1) Collateralized by a US$100.0 million mortgage over Carmen, Abolengo and San Carlos farms, which are property of Adeco Agropecuaria 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, originally 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 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, 2023 and 2022 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, 2023 and 2022 equals US$485.3 million and US$474.3 million, 97.06% and 94.86% 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, 2023 and 2022 is as follow:

 20232022
Amount at the beginning of the year1,007,752 817,651 
Proceeds from long term borrowings7,739 41,082 
Payments of long term borrowings(24,105)(14,012)
Proceeds from short term borrowings448,532 347,928 
Payments of short term borrowings(420,276)(192,648)
Payments of interest (1)(43,457)(33,189)
Accrued interest33,495 51,596 
Acquisition of subsidiaries (Note 21)— 17,738 
Exchange differences, inflation and translation, net(105,465)(30,489)
Others 734 2,095 
Amount at the end of the year904,949 1,007,752 
(1) Excludes payment of interest related to trade and other payables.