19. Borrowings

Accounting policies

Borrowings are initially recognised at fair value less the transaction costs that were incurred and are subsequently measured at the amortised cost. Any difference between the issued value (net of transaction costs incurred) and the nominal value is recognised in the results during the period of the borrowings, in accordance with the effective interest rate method (note 2.4.2).

Borrowings are classified as current liabilities, unless the Group has the unconditional right to defer settlement of the liability for more than 12 months after the reporting date.

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until the assets are substantially ready for their intended use.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

The Group has negotiated commercial paper programs in the total amount of €265 million, of which €115 million are committed. The utilizations under these programs are remunerated at the Euribor rate for the respective issue period plus variable spreads and can also be issued on auctions. These programs were not being used as of 31 December 2023.

Jerónimo Martins Polska S.A. made the early repayment of a loan in the amount of 50 million zloty and ended a contract of 6 million American dollars. The amount of 99 million zloty, around 23 million euros, was also paid, related to the capital amortization of a medium/long term loan. A new medium and long-term financing line was contracted, with a limit of 1,500 million zloty, around €346 million, to partially support investments in energy efficiency at Biedronka stores, which will be used throughout 2024.

Jerónimo Martins Colombia, S.A.S. paid of 138,000 million colombian pesos, around €33 million, related to capital repayment of three medium and long-term loans. At the end of December, Jeronimo Martins Colombia, SAS increased the use of its financing lines by 1,048,000 million colombian pesos, approximately €248 million, of which 300,000 million colombian pesos, approximately €71 million, were in a loan with 3 years maturity.

19.1. Current and non-current loans

19.2. Loan terms and maturities

19.3. Financial net debt

As the Group contracted several foreign exchange rate risk and interest risk hedging operations, as well as short-term investments, the net consolidated financial debt as at 31 December is: