XML 64 R30.htm IDEA: XBRL DOCUMENT v3.20.1
25. Borrowings
 12 Months Ended
Dec. 31, 2019
Borrowings [abstract]  
Borrowings
     12.31.19    12.31.18
Non-current        
Corporate notes (1)           8,197,429           9,610,574
Borrowing                          -           1,449,283
Total non-current           8,197,429         11,059,857
         
Current        
Interest from corporate notes              143,462              169,175
Borrowing           1,515,774           1,487,624
Total current           1,659,236           1,656,799

  

(1)   Net of debt issuance, repurchase and redemption expenses.

 

The fair values of the Company’s non-current borrowings as of December 31, 2019 and 2018 amount approximately to $ 7,947.3 million and $ 9,936.5 million, respectively. Such values were determined on the basis of the estimated market price of the Company’s Corporate Notes at the end of each year. The applicable fair value category is Level 1 category.

 

The Company’s borrowings are denominated in the following currencies:

 

     12.31.19    12.31.18
US dollars           9,856,665         12,716,656
            9,856,665         12,716,656

  

The maturities of the Company’s borrowings and its exposure to interest rate are as follow: 

 

     12.31.19    12.31.18
Fixed rate        
Less than 1 year              143,462              169,175
From 2 to 5 years           8,197,429           9,610,574
            8,340,891           9,779,749
Floating rate        
Less than 1 year           1,515,774           1,487,624
From 1 to 2 years                          -           1,449,283
From 2 to 5 years                          -                          -
            1,515,774           2,936,907
            9,856,665         12,716,656

 

The roll forward of the Company’s borrowings during the year was as follows:

 

     12.31.19    12.31.18
Balance at beginning of the year      12,716,656     9,678,949
Proceeds from borrowings     -     -
Payment of borrowings' interests     (1,134,828)     (1,003,605)
Paid from repurchase of Corporate Notes     (1,531,033)     (577,437)
Payment of borrowings     (1,593,024)     -
Gain from repurchase of Corporate Notes     (456,884)      (6,980)
Exchange diference and interest accrued     6,687,379     9,432,905
Result from exposure to inlfation     (4,831,601)     (4,807,176)
         
Balance at the end of year     9,856,665      12,716,656

  

Corporate Notes programs

 

The Company is included in a Corporate Notes program, the relevant information of which is detailed below:

 

Debt issued in United States dollars

 

                Million of USD Million of $
Corporate Notes   Class   Rate   Year of Maturity   Debt structure at 12.31.18   Debt repurchase   Debt structure at 12.31.19   At 12.31.19
Fixed Rate Par Note   9   9.75   2022      161.65      (29.08)   132.57   8,197.43
Total                  161.65      (29.08)   132.57   8,197.43
                             
                             
                             
                Million of USD Million of $
Corporate Notes   Class   Rate   Year of Maturity   Debt structure at 12.31.17   Debt repurchase   Debt structure at 12.31.18   At 12.31.18
Fixed Rate Par Note   9   9.75   2022      171.87      (10.22)   161.65   9,610.57
Total                  171.87      (10.22)   161.65   9,610.57

 

The main covenants are the following:

 

                 i.   Negative Covenants

 

The terms and conditions of the Corporate Notes include a number of negative covenants that limit the Company’s actions with regard to, among others, the following:

 

- encumbrance or authorization to encumber its property or assets;

- incurrence of indebtedness, in certain specified cases;

- sale of the Company’s assets related to its main business;

- carrying out of transactions with shareholders or related companies;

- making certain payments (including, among others, dividends, purchases of edenor’s common shares or payments on subordinated debt).

 

                ii.   Suspension of Covenants:

 

Certain negative covenants stipulated in the terms and conditions of the Corporate Notes will be suspended or adapted if:

 

- the Company’s long-term debt rating is raised to Investment Grade, or the Company’s Debt Ratio is equal to or lower than 3.

- If the Company subsequently losses its Investment Grade rating or its Debt Ratio is higher than 3, as applicable, the suspended negative covenants will be once again in effect.

 

At the date of issuance of these financial statements, the previously mentioned ratios have been complied with.

 

In fiscal year 2019, the Company repurchased at market prices, in successive transactions, “Fixed Rate Class 9 Par Corporate Notes” due 2022, for an amount of USD 29.1 million nominal value.