| BORROWINGS AND FINANCING |
| 14. | BORROWINGS AND FINANCING |
The balance of borrowings and financing that are recorded
at amortized cost are as follows:
| Schedule of borrowings and financing |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Consolidated |
| |
|
|
Current Liabilities |
|
Non-current Liabilities |
| |
|
|
12/31/2025 |
|
12/31/2024 |
|
12/31/2025 |
|
12/31/2024 |
| |
|
|
|
|
|
|
|
|
|
| Foreign Debt |
|
|
|
|
|
|
|
|
|
| Floating Rates in USD |
|
|
|
|
|
|
|
|
|
| Prepayment |
|
|
3,236,980 |
|
2,331,452 |
|
5,601,328 |
|
7,585,516 |
| Fixed Rates in USD |
|
|
|
|
|
|
|
|
|
| Bonds, Facility and ACC |
|
|
4,034,971 |
|
2,804,036 |
|
20,152,704 |
|
24,162,280 |
| Fixed interest in EUR |
|
|
|
|
|
|
|
|
|
| Facility |
|
|
637,083 |
|
657,980 |
|
234,411 |
|
305,556 |
| |
|
|
7,909,034 |
|
5,793,468 |
|
25,988,443 |
|
32,053,352 |
| |
|
|
|
|
|
|
|
|
|
| Debt agreements in BRL |
|
|
|
|
|
|
|
|
|
| Floating Rate Securities |
|
|
|
|
|
|
|
|
|
| BNDES/FINAME/FINEP, Debentures, CRI and NCE |
|
|
2,613,940 |
|
3,109,090 |
|
17,081,203 |
|
16,602,668 |
| |
|
|
2,613,940 |
|
3,109,090 |
|
17,081,203 |
|
16,602,668 |
| Total Borrowings and Financing |
|
|
10,522,974 |
|
8,902,558 |
|
43,069,646 |
|
48,656,020 |
| Transaction Costs and Issue Premiums |
|
|
(94,415) |
|
(80,879) |
|
(573,658) |
|
(563,078) |
| Total Borrowings and Financing + Transaction cost |
|
|
10,428,559 |
|
8,821,679 |
|
42,495,988 |
|
48,092,942 |
| 14.a) | Changes in Borrowings and Financing |
The following table shows the reconciliation of the book
value at the beginning and end of the year:
| Schedule of reconciliation of the book
value |
|
|
|
|
|
|
| |
|
|
|
|
|
Consolidated |
| |
|
Ref. |
|
12/31/2025 |
|
12/31/2024 |
| Opening balance |
|
|
|
56,914,621 |
|
44,859,075 |
| New debts |
|
|
|
11,121,708 |
|
10,180,554 |
| Repayment |
|
|
|
(11,717,772) |
|
(6,927,383) |
| Payments of charges |
|
|
|
(4,267,926) |
|
(4,052,226) |
| Accrued charges |
|
30 |
|
4,314,121 |
|
4,230,413 |
| Acquisition of stakes in subsidiaries |
|
3 |
|
641,574 |
|
|
| Iron ore prepayment (1) |
|
|
|
66,717 |
|
|
| Amortization of iron ore prepayments (1) |
|
|
|
(66,717) |
|
|
| Other (2) |
|
|
|
(4,081,779) |
|
8,624,188 |
| Closing balance |
|
|
|
52,924,547 |
|
56,914,621 |
| (1) |
They refer to iron ore prepayment bonds that were initially recognized as advances from customers, as they refer to a future obligation
to deliver the product. However, given the impossibility of delivering the product during the period and the need for a cash settlement,
this obligation came to be characterized as a monetary item and was reclassified as financial liability. These amounts were fully settled
for the period. |
| (2) |
Amounts include unrealized changes in exchange rate and inflation, as well as costs of capital raising. |
In 2025, the Company entered into new debt agreements
and amortized borrowings and financing as shown below:
| Schedule of amortized borrowings and financing |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Consolidated |
| |
|
|
|
|
|
|
|
12/31/2025 |
| Nature |
|
New debts |
|
Maturities |
|
Repayment |
|
Interest payment |
| Pre-Payment |
|
2,490,399 |
|
2027 |
|
(2,207,681) |
|
(611,401) |
| Bonds, Foreign Exchange Contract and Facility |
|
5,024,598 |
|
2026 to 2028 |
|
(5,164,712) |
|
(1,569,845) |
| BNDES/FINAME/FINEP, Debentures, CRI and NCE |
|
3,606,711 |
|
2026 to 2042 |
|
(4,345,379) |
|
(2,086,680) |
| |
|
11,121,708 |
|
|
|
(11,717,772) |
|
(4,267,926) |
| |
|
|
|
|
|
|
|
Consolidated |
| |
|
|
|
|
|
|
|
12/31/2024 |
| Nature |
|
New debts |
|
Maturities |
|
Repayment |
|
Interest payment |
| Pre-Payment |
|
1,368,163 |
|
2027 |
|
(910,098) |
|
(601,576) |
| Bonds, ACC, CCE and Facility |
|
5,764,390 |
|
2024 to 2027 |
|
(3,895,219) |
|
(1,545,960) |
| BNDES/FINAME/FINEP, debentures, NCE, Facility and CCB |
|
3,048,001 |
|
2024 to 2029 |
|
(2,122,066) |
|
(1,904,690) |
| |
|
10,180,554 |
|
|
|
(6,927,383) |
|
(4,052,226) |
| 14.b) | Maturities of Debts Presented in Current and Non-Current
Liabilities |
| Schedule of maturities of borrowings and financing |
|
|
|
|
|
|
| |
|
|
|
|
|
Consolidated |
| |
|
|
|
|
|
12/31/2025 |
| |
|
In foreign currency |
|
In national currency |
|
Total |
| Average rate |
|
US$ 6.42% € 3.53% |
|
R$ 16.1% |
|
| 2026 |
|
7,909,035 |
|
2,613,938 |
|
10,522,973 |
| 2027 |
|
3,890,494 |
|
3,915,457 |
|
7,805,951 |
| 2028 |
|
8,891,443 |
|
2,509,911 |
|
11,401,354 |
| 2029 |
|
564,742 |
|
1,909,546 |
|
2,474,288 |
| 2030 |
|
4,319,384 |
|
1,632,412 |
|
5,951,796 |
| 2031 |
|
5,144,744 |
|
1,460,420 |
|
6,605,164 |
| After 2031 |
|
3,177,635 |
|
5,653,459 |
|
8,831,094 |
| |
|
33,897,477 |
|
19,695,143 |
|
53,592,620 |
| |
|
|
|
|
|
Consolidated |
| |
|
|
|
|
|
12/31/2024 |
| |
|
In foreign currency |
|
In national currency |
|
Total |
| Average rate |
|
US$
6.63% € 4.13% |
|
R$ 14.17% |
|
| 2025 |
|
5,793,468 |
|
3,109,090 |
|
8,902,558 |
| 2026 |
|
3,743,647 |
|
2,451,482 |
|
6,195,129 |
| 2027 |
|
3,092,488 |
|
3,960,658 |
|
7,053,146 |
| 2028 |
|
9,587,952 |
|
2,129,007 |
|
11,716,959 |
| 2029 |
|
661,132 |
|
1,088,655 |
|
1,749,787 |
| 2030 to 2032 |
|
14,522,803 |
|
4,087,733 |
|
18,610,536 |
| After 2032 |
|
445,330 |
|
2,885,133 |
|
3,330,463 |
| |
|
37,846,820 |
|
19,711,758 |
|
57,558,578 |
·
Covenants
The Company's debt contracts provide for compliance with
certain non-financial obligations, as well as maintenance of specific performance parameters and indicators, such as the disclosure of
audited financial statements according to regulatory deadlines or having early maturity declared if the net debt to EBITDA indicator reaches
the levels specified in these contracts.
As of the present date, the Company is compliant with
the financial and non-financial obligations (covenants) of its current contracts.
Accounting Policy
Loans and borrowings are initially recognized at fair
value, net of transaction cost and subsequently measured at amortized cost and restated using effective interest methods and charges.
Interest, commissions, and any financial charges are recorded on an accrual basis, that is, in accordance with the time elapsed.
|