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LOANS AND BORROWINGS
 12 Months Ended
Dec. 31, 2022
Loans And Borrowings  
LOANS AND BORROWINGS

 

15.LOANS AND BORROWINGS
                                     
   
                                       
  Charges (p.a.)   Average rate (1)   WAMT (2)   12.31.21   Borrowing   Amortization   Interest paid  

Interest accrued

(3)

   Exchange rate variation   12.31.22
Local currency                                      
Working capital  Fixed / CDI     10.72%
(5.24% on 12.31.21) 		    0.6   406,962   386,844    (392,684)   (18,473)     26,902     (365)   409,186
Certificate of agribusiness receivables (4)  IPCA     11.80%
(16.57% on 12.31.21) 		    1.0   967,948     (242)    -   (86,620)    118,560    -   999,646
Development bank credit lines  TJLP / TLP/ IPCA / FINAME     (3.12% on 12.31.21)     -   7,679    -     (6,328)     (1,472)    121    -    -
Debentures  CDI / IPCA     12.09%
(15.54% on 12.31.21) 		    8.5   4,210,015   1,649,905   (70,000)    (258,593)    408,819    -   5,940,146
Export credit facility (5)  Fixed / CDI     9.05%
(10.87% on 12.31.21) 		    5.3   3,516,273   637,000    (415,706)    (272,642)    290,544    (141,914)   3,613,555
                                       
Fiscal incentives  Fixed     2.40%
(2.40% on 12.31.21) 		    -   3,601   100,326   (98,667)     (827)    853    -   5,286
              9,112,478   2,773,833    (983,385)    (638,627)    845,799    (142,279)    10,967,819
                                       
Foreign currency                                      
Bonds  Fixed / FX USD and EUR     4.91%
(4.82% on 12.31.21) 		     11.0    15,544,012    -    (2,416,162)    (793,711)    724,476    (1,156,325)    11,902,290
Export credit facility  Fixed / LIBOR / FX USD     7.10% (3.43% on 12.31.21)     0.2   311,385    -    (170,051)     (7,119)    7,609     (8,937)   132,887
Advances for foreign exchange rate contracts  Fixed / FX USD    -    -   3,103    -     (2,766)    -    (53)     (284)    -
Working capital  Fixed / FX TRY and USD     16.83% (13.35% on 12.31.21)     0.7   485,052   618,780    (412,058)   (78,844)     74,581    (173,507)   514,004
                                       
               16,343,552   618,780    (3,001,037)    (879,674)    806,613    (1,339,053)    12,549,181
               25,456,030   3,392,613    (3,984,422)    (1,518,301)    1,652,412    (1,481,332)    23,517,000
                                       
Current             3,203,068                       3,879,874
Non-current              22,252,962                        19,637,126
(1)Weighted average annual rate.
(2)Weighted average maturity in years.
(3)Includes interest amounts, monetary restatement of the principal and coupon.
(4)The Certificate of Agribusiness Receivable (“CRA”) issued by the Company are backed by receivables of BRF S.A. from certain subsidiaries abroad.
(5)On December 31, 2022, includes the amount of R$2,019,866 (R$2,160,061 on December 31, 2021) 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 (1)   WAMT (2)   12.31.20   Borrowing   Business combination   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  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  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.

 

The maturity schedule of the loans and borrowings is presented on note 24.3.

 

On December 31, 2022 and on December 31, 2021 the Company did not have any financial covenant clauses related to its loans and borrowings agreements.

 

In the ordinary course of business, the Company from time to time may consider repurchasing any of its Senior Unsecured Notes (Bonds), subject market conditions, as alternative for improving the cost of capital and for better equalization of the foreign exchange balances and of the indebtedness profile. Such repurchases may be carried out in different ways, including open market transactions. Subject to compliance with applicable laws, any such transaction may be carried out at any time, and the Company has no obligation to acquire any particular amount of Bonds.

 

15.1.    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 12, 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, which renewal was approved by the Board of Directors on October 21, 2022, under the same conditions, for an additional period of 2 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, 2022, the credit facilities were available, but unused.

 

15.2.    Guarantees

     
   
  12.31.22   12.31.21
Total loans and borrowings  23,517,000    25,456,030
Mortgage guarantees 5,286     20,343
Related to FINAME  -     16,742
Related to tax incentives and other 5,286   3,601

 

On December 31, 2022, the amount of bank guarantees contracted by the Company was of R$447,736 (R$478,468 as of December 31, 2021) which were offered mainly in litigations involving the Company’s use of tax credits. These guarantees have an average cost of 1.92% p.a. (1.93% p.a. as of December 31, 2021).

15.3.    Debentures offering

On July 13, 2022, the securitization company subscribed, under the private placement, 1,700,000 (one million and seven hundred thousand) debentures with a unit face value of R$ 1 (one thousand Reais) and consists of two series, in a total amount of R$1,700,000 (one billion and seven hundred million Reais). The first series is composed of 710,000 (seven hundred and ten thousand) debentures, with maturity on July 13, 2027 and indexed to DI. The second series is composed of 990,000 (nine hundred and ninety thousand) debentures, with maturity on July 13, 2032 and indexed to IPCA.

15.4.    Senior Notes repurchase

During the year ended on December 31, 2022, the Company repurchased the following issues of senior notes: 4.875% Senior Notes due in 2030 and 5.75% Senior Notes due in 2050. The result of the repurchases is set forth below:

                       
Instrument   Currency   Maturity   Notional repurchased   Outstanding notional (1)
      (loan currency)   (Reais) (2)   (loan currency)   (Reais) (3)
                         
BRF S.A. - BRFSBZ 4 7/8   USD   2030     102,291     537,837     588,307    3,069,609
BRF S.A. - BRFSBZ 5 3/4   USD   2050     128,810     676,862     671,190    3,502,068
(1)Outstanding notional after the tender offer.
(2)Represented by the amount in the original loan currency, translated by the foreign exchange rate at the settlement date of the repurchase.
(3)Represented by the amount in the original loan currency, translated by the foreign exchange rate at the settlement date 12.31.22.

 

The Company paid the amount equivalent to R$950,924 for the repurchase of these liabilities, which includes notional as depicted above, increased by interest, premium and taxes in the amount of R$12,142 and net of financial income in the amount of R$275,917 referring to the discount on the repurchase. Furthermore, the repurchase generated financial expenses in the amount of R$12,830 related to financial taxes and R$23,941 with the write-off of the costs of issuance.