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LOANS AND BORROWINGS
 12 Months Ended
Dec. 31, 2021
LOANS AND BORROWINGS

 

14.LOANS AND BORROWINGS

  Charges (p.a.)   Average rate (1)   WAMT (2)   12.31.20   Borrowing   Business combination (note 1.2)   Amortization   Interest paid   Interest accrued   Exchange rate variation   12.31.21
Local currency                                          
Working capital  Fixed / CDI     5.24%
(3.25% on 12.31.20) 		     0.7   368,681   400,000     25,950    (389,734)   (11,910)    13,975    -   406,962
Certificate of agribusiness receivables (3)  IPCA     16.57%
(10.21% on 12.31.20) 		     2.0   821,093    -    -    -     95   146,760    -   967,948
Development bank credit lines  TJLP / TLP/ IPCA / FINAME     3.12%      3.7    -    -   9,006     (1,351)   (87)   111    -   7,679
Debentures  CDI / IPCA     15.54%
(8.28% on 12.31.20) 		     7.3   3,022,005   965,549    -    -    (188,668)   411,129    -   4,210,015
Export credit facility (4)  Fixed / CDI / FX USD     10.87% (3.69% on 12.31.20)      4.2   2,408,697   937,250     20,456     (5,632)    (117,679)   122,510   150,671   3,516,273
                                           
Fiscal incentives  Fixed     2.40%
(2.40% on 12.31.20) 		     -    44,816    82,064    -    (123,236)     (797)   754    -   3,601
              6,665,292   2,384,863     55,412    (519,953)    (319,046)   695,239   150,671   9,112,478
                                           
Foreign currency                                          
Bonds  Fixed / FX USD and EUR     4.82%
(4.81% on 12.31.20) 		   11.6    14,829,993    -    -    (314,806)    (790,836)   888,804   930,857    15,544,012
Export credit facility  Fixed / LIBOR / FX USD     3.43% (3.13% on 12.31.20)      1.3   392,636    -     30,476    (138,870)   (10,867)    10,466    27,544   311,385
Advances for foreign exchange rate contracts  Fixed / FX USD    -     -    -   249,000   2,672    (249,000)     (1,182)   1,363   250   3,103
Working capital  Fixed / FX TRY and USD     13.35% (10.98% on 12.31.20)      1.5   516,505   356,919     29,555    (172,718)   (71,436)    85,339    (259,112)   485,052
                                           
               15,739,134   605,919     62,703    (875,394)    (874,321)   985,972   699,539    16,343,552
               22,404,426   2,990,782   118,115    (1,395,347)    (1,193,367)   1,681,211   850,210    25,456,030
                                           
Current             1,059,984                           3,203,068
Non-current              21,344,442                            22,252,962
(1)Weighted average annual rate.
(2)Weighted average maturity in years.
(3)The Certificate of Agribusiness Receivable (“CRA”) issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.
(4)On December 31, 2021, includes the amount of R$2,160,061 (R$2,408,697 on December 31, 2020) referring to an Export Credit Facility issued in Reais simultaneously and in connection with a foreign exchange rate swap, resulting essentially in a net cash flow in U.S. Dollars. As the transactions are inseparable, both are recorded together under Loans and Borrowings by their amortized cost.

 

 

  Charges (p.a.)   Average rate   WAMT   12.31.19   Borrowing   Amortization   Interest paid   Interest accrued   Exchange rate variation   12.31.20
Local currency                                      
Working capital  Fixed / CDI     3.25%
(6.07% on 12.31.19) 		        0.6            3,312,639            1,200,000          (3,947,237)             (340,227)               143,506                         -               368,681
Certificate of agribusiness receivables  CDI / IPCA     10.21%
(6.73% on 12.31.19) 		        3.0            1,597,447                         -             (780,000)             (100,932)               104,578                         -               821,093
Development bank credit lines  Fixed / Selic / TJLP     (5.09% on 12.31.19)            -                45,516                         -               (45,470)                    (427)                     381                         -                         -
Debentures  CDI / IPCA     8.28%
(7.40% on 12.31.19) 		        7.7               755,760            2,124,725                         -               (38,339)               179,859                         -            3,022,005
Export credit facility  Fixed / CDI / USD     3.69% (5.83% on 12.31.19)         6.8            1,612,365            1,490,809          (1,113,176)             (111,498)               152,968               377,229            2,408,697
Special program asset restructuring  IGPM     (12.22% on 12.31.19)            -               284,308                         -             (287,621)                 (5,142)                  8,455                         -                         -
                                       
Fiscal incentives  Fixed     2.40%
(2.40% on 12.31.19) 		           -                  5,720                73,671               (34,609)                    (667)                     701                         -                44,816
                       7,613,755            4,889,205          (6,208,113)             (597,232)               590,448               377,229            6,665,292
                                       
Foreign currency                                      
Bonds  Fixed / USD / EUR     4.81%
(4.36% on 12.31.19) 		      12.4          10,407,484            4,282,961          (3,010,421)             (760,879)               881,137            3,029,711          14,829,993
Export credit facility  Fixed / LIBOR / USD     3.13% (5.77% on 12.31.19)         2.2               407,275                         -             (118,113)               (20,686)                17,627               106,533               392,636
Advances for foreign exchange rate contracts  Fixed / USD                                   -           -                         -               529,211             (529,210)                         -                         -                       (1)                         -
Working capital  Fixed / TRY     10.98% (16.56% on 12.31.19)         1.2               191,765               718,956             (381,502)               (42,742)                46,704               (16,676)               516,505
                                       
                     11,006,524            5,531,128          (4,039,246)             (824,307)               945,468            3,119,567          15,739,134
                     18,620,279          10,420,333         (10,247,359)          (1,421,539)            1,535,916            3,496,796          22,404,426
                                       
Current                      3,132,029                                1,059,984
Non-current                    15,488,250                              21,344,442

 

 

On December 31, 2021 and on December 31, 2020 the Company did not have any financial covenant clauses related to its loans and borrowings agreements.

 

 

The maturity schedule of the loans and borrowings is presented on note 23.3.

 

 

14.1.Revolving credit facility

With the purpose of maintaining a prudential and sustainable short-term liquidity position, in line with the adoption of measures to extend its average debt maturity and reduce the cost of debt, on December 27, 2019, the Company retained from Banco do Brasil a revolving credit facility up to the limit of R$1,500,000 for a period of three years. On October 28, 2020 the Company retained an additional revolving credit facility before Banco do Brasil, up to the limit of R$1,500,000, for the next three years. The referenced credit facilities can be withdrawn totally or partially, at the Company’s will, whenever necessary. As of December 31, 2021, the credit facilities were available, but unused.

14.2.        Issuance of debentures

On June 02, 2021, 1,000,000 (one million) Debentures were subscribed with a notional value of R$ 1,000.00 (one thousand Brazilian Reais), in a total amount of R$1,000,000, in a single series. The Debentures are simple, not convertible into shares, unsecured and for private placement. The Debentures were privately placed with VERT Companhia Securitizadora, to back its sixtieth issuance of Agribusiness Receivables Certificates which were object of public distribution with restricted placement efforts.

12.31.21
Operation   Series   Issue date   Maturity   Rate   Notional   Updated Value
Debenture - 3rd Issue   1st Series   06.02.21   05.14.31   IPCA + 4.78% p.a.           1,000,000           1,034,706

 

 

The issuance costs of R$34,258 are recognized on the statement of income over the term of the debt according to the effective interest rate method.

 

14.3.Senior Notes repurchase offer

During June 2021, the Company made an offer to repurchase its 4.875% Senior Notes due on 2030, in which it repurchased the principal amount equivalent to R$297,141 (USD59,402). The Company paid the amount of R$317,532 for the repurchase of these liabilities, amount that includes principal, interest and premium. The Company incurred in financial expenses in the amount of R$14,114 with the premium paid, R$2,491 with taxes and R$3,089 with the write-off of the costs of issuance. The principal outstanding after the repurchase is equivalent to R$3,454,509 (USD690,598).

 

  14.4. Guarantees

  12.31.21   12.31.20
Total loans and borrowings        25,456,030          22,404,426
Mortgage guarantees               20,343                 44,816
Related to FINAME               16,742                         -
Related to tax incentives and other                3,601                 44,816

 

On December 31, 2021, the amount of bank guarantees contracted by the Company was of R$478,468 (R$590,933 as of December 31, 2020) which were offered mainly in litigations involving the Company’s use of tax credits. These guarantees have an average cost of 1.93% p.a. (1.95% p.a. as of December 31, 2020).