Industrias Bachoco S.A.B. de C.V. | CIK:0001044896 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Industrias Bachoco S.A.B. de C.V. (CIK: 0001044896)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1044896/000114420418023204/0001144204-18-023204-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1044896/000114420418023204/bachocob-20171231.xml
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    • ifrs-full:DisclosureOfBorrowingsExplanatory

    (18)
    Financial debt
     
    a)
    Short-term financial debt is as follows:
     
     
     
    December 31,
     
     
     
    2017
     
    2016
     
    2015
     
    Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.44 percentage points.
     
    $
    1,376,200
     
     
    -
     
     
    -
     
    Loan in the amount of 70,000 thousand dollars, maturing in July 2017, at LIBOR (3) rate plus 0.425 percentage points.
     
     
    1,376,200
     
     
    -
     
     
    -
     
    Denominated in pesos, maturing in January 2018, at TIIE (1) FIRA (2) rate plus 0.60 percentage points
     
     
    100,000
     
     
    -
     
     
    -
     
    Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.50 percentage points.
     
     
    -
     
     
    1,444,800
     
     
    -
     
    Loan of 85,000 thousand dollars, maturing in June 2016, at LIBOR (3) rate plus 0.48 percentage points
     
     
    -
     
     
    -
     
     
    1,462,850
     
    Denominated in pesos, maturing in January 2016, at TIIE (1) FIRA (2) rate plus 0.85 percentage points
     
     
    -
     
     
    -
     
     
    160,000
     
    Total short-term debt
     
    $
    2,852,400
     
     
    1,444,800
     
     
    1,622,850
     
     
    The annual weighted average interest rate of short-term loans denominated in pesos for 2017 was 8.06% during 2016, no short-term debt denominated in pesos was contracted, and 2015 such rate was 3.13%. The average interest rate for loans outstanding as of December 31, 2017 and 2015 was 8.06% and 4.17%, respectively.
     
    The annual weighted average interest rate of short-term loans denominated in dollars for the years 2017, 2016 and 2015 was 1.22%, 1.04% and 1.05%, respectively. The average interest rate for loans outstanding as of December 31, 2017, 2016 and 2015 was 1.57%, 1.05% and 0.83%, respectively.
     
    (1)
    TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate
     
    (2)
    FIRA (for its acronym in Spanish) = Agriculture Trust Funds
     
    (3)
    LIBOR= London Interbank Offered Rate
     
    b)
    Long-term debt consists of the following:
      
     
     
    December 31,
     
     
     
    2017
     
    2016
     
    2015
     
    Denominated in pesos, maturing in September 2017, at TIIE (1) rates plus 0.63 percentage points.
     
    $
     
     
     
    98,000
     
     
    100,000
     
    Denominated in pesos, maturing in 2017 and 2018, at TIIE (1) FIRA (2) rates less 0.25 percentage points.
     
     
    553,651
     
     
    603,739
     
     
    603,871
     
    Denominated in pesos, maturing in 2018, at TIIE (1) FIRA (2) rates less 0.60 percentage points.
     
     
    289,000
     
     
    293,400
     
     
    297,800
     
    Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points.
     
     
    53,973
     
     
    53,978
     
     
    -
     
    Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.50 percentage points.
     
     
     
     
     
    54,000
     
     
    -
     
    Denominated in pesos, maturing in 2015 and 2016, at TIIE (1) plus 1.00 percentage points.
     
     
     
     
     
    -
     
     
    2,489
     
    Debt securities (subsection (d))
     
     
    -
     
     
    1,500,000
     
     
    1,500,000
     
    Debt securities (subsection (d))
     
     
    1,500,000
     
     
    -
     
     
    -
     
    Total
     
     
    2,396,624
     
     
    2,603,137
     
     
    2,504,160
     
    Less current maturities
     
     
    (842,651)
     
     
    (1,652,725)
     
     
    (9,033)
     
    Long-term debt, excluding current maturities
     
    $
    1,553,973
     
     
    950,412
     
     
    2,495,127
     
     
    The annual weighted average interest rate on long-term debt for 2017, 2016 and 2015 was 7.72%, 4.04% and 3.07%, respectively. The average rate for outstanding loans as of December 31, 2017, 2016 and 2015 was 7.48%, 5.63% and 3.56%, respectively.
     
    (1) TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate
    (2) FIRA (for its acronym in Spanish) = Trust Established in Relation to Agriculture
     
    During 2017 the Company made early payments on its long-term debt of $53,900; during 2016 and 2015, the Company did not make early payments on its long-term debt.
     
    As of December 31, 2017, 2016 and 2015, total unused lines of credit totaled $7,031,813, $5,551,263 and $6,156,229, respectively. In all such years, the Company did not pay any fee for undrawn balances.
     
    c)
    Maturities of long-term debt, excluding current maturities, as of December 31, 2017, are as follows:
      
    Year
     
    Amount
     
    2019
     
     
    53,973
     
    2022
     
     
    1,500,000
     
     
     
     
    1,553,973
     
     
    Interest expense on total loans during the years ended December 31, 2017, 2016 and 2015, amounted to $188,597, $129,769 and $93,964, respectively.
     
    Certain bank loans establish certain affirmative and negative covenants, as well as the requirement to maintain certain financial ratios, which have been met as of December 31, 2017, among which are:
     
    a)
    Provide financial information at the request of the bank.
     
    b)
    Not to contract liabilities with financial cost or grant loans that may affect payment obligations.
     
    c)
    Notify the bank regarding the existence of legal issues that could substantially affect the financial situation of the Company.
     
    d)
    Not to perform substantial changes to the nature of the business, or the administrative structure.
     
    e)
    Not to merge, consolidate, separate, settle or dissolve except for those mergers in which the Company or surety are the merging company and do not constitute a change in control of the entities of the group to which the Company or the surety belong at the date of the agreement.
     
    d)
    Issuance of debt securities
     
    On August 28, 2012, the Company was authorized to issue debt securities in the total amount of the program of $5,000,000 or the equivalent in UDIS (1), on a revolving basis, for a term of five years from the date of the authorization letter from the Mexican Banking and Securities Commission. The initial issuance dated August 31, 2012 was for $1,500,000 pesos with ticker symbol: "BACHOCO 12" for a term of 1,820 days, equivalent to 65 periods of 28 days, approximately five years, with 15,000,000 debt securities and a par value of $100 pesos per certificate.
     
    On August 25, 2017, the debt securities issued with ticker "BACHOCO 12" expired, and were paid according to the contractual terms of the issuance.
     
    On August 25, 2017, a second issuance of debt securities was carried out for a total amount of $1,500,000 with ticker symbol: “BACHOCO 17” for a term of 1,820 days, equivalent to 65 periods of 28 days, approximately five years, with 15,000,000 debt securities and a par value of $100 pesos per certificate.
     
    From the date of issuance, and while the debt securities have not been paid, they will accrue annual gross interest on their face amount, at an annual interest rate, which is calculated by adding 0.31 percentage points at the 28-day TIIE, and in the event the 28-day TIIE is not published, at the nearest term published by the Bank of Mexico. The debt issue that expired in 2017 accrued a gross interest on its nominal value, at an annual interest rate, which was calculated by adding 0.60 percentage points to the 28-day TIIE.
     
    The amortization of the debt securities is carried out at the expiration of the contractual term of each issuance. Direct costs arising from debt issuance or contract are deferred and amortized as part of financial expense using the effective interest rate through the expiration of each transaction. Such costs include commissions and professional fees.
     
    (1)
    UDIS = Investment units
     
    Derived from the issuance of the Debt securities, the Company is subject to certain requirements, affirmative and negative covenants, with which they comply as of December 31, 2017.
     
    e)
    Reconciliation of liabilities arising from financing activities
      
    Balance as of January 1, 2017
     
    $
    4,047,937
     
    Changes that represent cash flows
     
     
     
     
    Proceeds from borrowings
     
     
    5,378,915
     
    Principal payment on loans
     
     
    (4,246,100)
     
    Changes that do not represent cash flows
     
     
     
     
    Others
     
     
    68,272
     
    Balance as of December 31, 2017
     
    $
    5,249,024