Investor Presentaiton
exchange of currency, dollar to real. These swaps were contracted with the financial
institution in conjunction with the loan (dollar-denominated debt + swap to reais in
% of CDI). The terms and conditions of the loan and derivative are configured as a
matched operation, so that economically the resulting is a debt in % of the CDI in reais.
The difference in measurement between the two instruments (loan at amortized cost x
derivative at fair value) generates an accounting mismatch in the result and to eliminate
this effect, contracts made as of August 2015, were designated as fair value, the effect
of this designation being the measurement of debt at fair value through profit or loss
as per Note 25.
(iii) The Company and its subsidiaries revised the methodology for calculating the fair value
of debts for disclosure purposes, which started to use as a reference the individual
credit risk rate of the Company and its subsidiaries, and no longer the rate consolidated
benchmark, with the exception of the fair values of the bonds, which were calculated
using as a reference unit prices published in the secondary market in all quarters.
Key:
161
Colombian Peso.
BNDES
BRL.
National Bank for Economic and Social Development.
Brazilian currency (Real).
BOB
Bolivian.
CAD
Canadian Dollar.
CDI.
Interbank Deposit Certificate.
CDOR..
Canadian Dollar Offered Rate.
COP
EUR
EURIBOR
FINAME
IBR
INR Indian
Rupee.
IPCA
LIBOR..
European Union currency (Euro).
Euro Interbank Offered Rate.
Government Agency for Machinery and Equipment Financing.
Interbank Rate (Colombia).
Extended Consumer Price Index.
London Interbank Offered Rate.
PEN .... Peruvian Sol.
SELIC Special System for Clearance and Custody.
TJLP. Long-term interest rate set by the National Monetary Council.
Until December 2017, the TJLP is the BNDES basic cost of fi-
nancing. As of January 2018, the Long Term Rate (TLP) became
the main financial cost of BNDES financing.
Tunisian Dinar.
TND
TRY.
Turkish Lira.
USD
US Dollar.
UYU
Uruguayan Peso.
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