v3.26.1
BORROWINGS
 12 Months Ended
Dec. 31, 2025
Borrowings [abstract]  
BORROWINGS BORROWINGS
As of December 31,
20252024
(i) Non-current
Bank borrowings699,593 499,593 
Bonds494,897 421,079 
Debentures639,617 642,110 
Less: debt issue costs(19,520)(2,735)
1,814,587 1,560,047 
(ii) Current
Bank borrowings573,386 646,258 
Bonds15,833 13,284 
Debentures17,659 12,587 
Less: debt issue costs(2,478)(2,057)
604,400 670,072 
Total Financial Debt2,418,987 2,230,119 
        
The maturity of borrowings is as follows:
Expected Maturity Date
202620272028 and thereafterAt December 31, (1)
20252024
Borrowings - Fixed Rate267,201 — — 267,201 649,571 
Borrowings - Floating Rate303,707 297,332 394,514 995,553 487,524 
Bonds15,833 — 484,971 500,804 440,405 
Debentures17,659 — 637,770 655,429 652,619 
Total604,400 297,332 1,517,255 2,418,987 2,230,119 
(1) As most borrowings and the debentures incorporate floating rates that approximate market rates and the contractual repricing occurs mostly every 1 month, the fair value of the borrowings and the debentures approximates their carrying amount and it is not disclosed separately. Fixed rate borrowings are uncommitted short-term revolving loans, and their fair value approximates to their carrying amount. Regarding the bonds, its fair value approximates the market value.
The weighted average interest rates - which incorporate instruments denominated mainly in U.S. dollars and which do not include the effect of derivative financial instruments nor the devaluation of these local currencies - at year-end were as follows:
As of December 31,
20252024
Bank borrowings5.45 %7.15 %
Bonds7.50 %5.88 %
Debentures16.17 %13.50 %
The nominal average interest rates shown above were calculated using the rates set for each instrument in its corresponding currency and weighted using the dollar-equivalent outstanding principal amount of said instruments as of December 31, 2025 and 2024, respectively.
24.    BORROWINGS (continued)
Breakdown of borrowings by currency is as follows:
As of December 31,
CurrenciesContract20252024
$Fixed710,831 969,826 
$Floating988,875 475,157 
BRLFloating655,429 652,619 
COPFixed57,171 79,140 
MXNFloating6,678 12,367 
ARSFixed3 41,010 
2,418,987 2,230,119 
$: U.S. dollars; ARS: Argentine pesos; BRL: Brazilian reais; COP: Colombian pesos; MXN: Mexican pesos.
Ternium’s most significant current borrowings as of December 31, 2025, were those incurred under Ternium Brasil's bilateral credit lines, in order to finance solely activities related to its exports of goods, and under Usiminas’ bonds and debentures issued in order to refinance its financial debt. Additionally, on July 23, 2025, Ternium México entered into a $1,250 million syndicated loan agreement with several banks to finance and/or refinance capital, operating and research and development expenditures and other related investments associated with the DRI-EAF steelmaking plant at its Pesquería Industrial Center in México. The net proceeds from the loan are expected to be disbursed over the next twelve months. The Loan qualifies as “green” under the 2025 LMA and LSTA Green Loan Principles, promoting the development and integrity of green loan products. The loan bears interest at a variable rate and must be repaid in six equal semi-annual installments, commencing in the 30th month anniversary of the effective date; the borrower may prepay the loan in whole or in part at any time. Under the loan, Ternium Mexico is subject to certain covenants customary for transactions of this type, including compliance with a specified leverage ratio and green reporting.
In $ million
DateBorrowerTypeOriginal principal amountOutstanding principal amount as of December 31, 2025Maturity
May 2024Ternium BrasilBilateral credit lines700 700 October 2030
July 2019UsiminasBonds500 500 January 2032
May 2022UsiminasDebentures - 8th emission145 73 November 2029
December 2022UsiminasDebentures - 9th emission310 243 December 2032
August 2024UsiminasDebentures - 10th emission320 323 September 2031
July 2025Ternium MexicoSyndicated loan agreement1,250 300 August 2030
The main covenants on these loan agreements, bonds and debentures are limitations on liens and encumbrances, limitations on the sale of certain assets and compliance with financial ratios (i.e. leverage ratio). As of December 31, 2025, Ternium was in compliance with all of its covenants.