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FINANCIAL OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Disclosure of deposits from financial obligations [abstract]

FINANCIAL OBLIGATIONS

NOTE 21 – FINANCIAL OBLIGATIONS

21.1 Financial obligations other than issued bonds

Interbank borrowings, overnight funds and borrowings from banks and others

The following is a summary of the financial obligations of Grupo Aval as of December 31, 2021 and 2020:


	December		December
	31, 2021		31, 2020

Local Currency
Interbank funds
Overnight funds	Ps.	8,910	Ps.	2,361
Interbank funds purchased		972,439		202,219
Commitments to transfer open and closed repo operations		3,644,717		2,237,837
Commitments to transfer simultaneous operations		4,422,249		3,397,284
Commitments originated in short positions simultaneous operations		717,210		158,203
Total interbank funds	Ps.	9,765,525	Ps.	5,997,904
Borrowings from banks and others
Borrowings		1,973,866		1,858,618
Leases contracts		1,488,300		1,597,463
Other financial obligations		7,721		7,899
Total borrowings from banks and others	Ps.	3,469,887	Ps.	3,463,980

Foreign currency
Interbank funds
Overnight funds		1,733		—
Interbank funds purchased		239,390		783,873
Commitments to transfer open and closed repo operations		596,134		397,867


	December		December
	31, 2021		31, 2020
Commitments to transfer simultaneous operations		69,633		—
Total interbank funds	Ps.	906,890	Ps.	1,181,740
Borrowings from banks and others
Borrowings		18,382,147		12,423,796
Leases contracts		1,393,857		1,428,270
Andean Development Corporation (Corporación Andina de Fomento)		627,600		268,889
Letters of credit		1,311,128		554,642
Bankers acceptances		1,909,580		1,378,310
Discoveries in bank current account		30,292		136,000
Other financial obligations		219		630
Total borrowings from banks and others	Ps.	23,654,823	Ps.	16,190,537
Total interbank borrowings, overnight funds and borrowings from banks and others	Ps.	37,797,125	Ps.	26,834,161

The amount of interbank borrowings, overnight funds and borrowings from banks and others due over 12 months as of December 31, 2021 was Ps. 11,436,422 and as of December 31, 2020 was Ps. 10,607,458.

Short-term obligations associated with simultaneous and repo operations as of December 31, 2021 amounted to Ps. 4,491,882 were guaranteed with investments were Ps. 9,994,115. And short-term obligations associated with simultaneous and repo operations as of December 31, 2020 amounted to Ps. 3,397,284 were guaranteed with investments were Ps. 6,756,912.

Borrowings from development entities

The Colombian Government has established certain credit programs for promoting the development of specific sectors of the economy, including foreign trade, agriculture, tourism, housing construction and other industries. The programs are managed by many entities of the Government such as Banco de Comercio Exterior (“Bancoldex”), Fondo para el Financiamiento del Sector Agropecuario (“Finagro”) and Financiera de Desarrollo Territorial (“Findeter”).

The details of the borrowings from these entities as of December 31, 2021, and 2020 and are as follows:


	Interest rates in force at cut off	December 31, 2021		December 31, 2020
Banco de Comercio Exterior - “BANCOLDEX”	Fix between 0.80% and 8.71%, DTF + 0.30% to 6.14%, IBR + 0.05% to 4.35%, LIBOR6 + 1.21% to 3.70%	Ps.	822,948	Ps.	1,046,721
Fondo para el Financiamiento del Sector Agropecuario - “FINAGRO”	Fix between 0.04% and 7.30%, DTF + 0.50% to 2.80% and IBR + 0.40% to 2.60%		394,391		327,902
Financiera de Desarrollo Territorial “FINDETER”	Fix between 0.01% and 9.74%, DTF + 1.00% to 4.80%, IBR + 0.11% to 4.85%, CPI + 0.50% and 5.00% and LIBOR6 + 3.14%		2,009,930		2,655,185
Total		Ps.	3,227,269	Ps.	4,029,808

The amount of borrowings from development entities due over 12 months as of December 31, 2021 was Ps. 3,104,889, and as of December 31, 2020 was Ps. 3,724,954.

The amount of financial obligations with development entities in Colombian pesos as of December 31, 2021 is Ps.3,214,706 and as of December 31, 2020 is Ps.3,972,161; in foreign currency, as of December 31, 2021 is Ps.12,563 and as of December 31, 2020 is Ps.57,647.

21.2. Financial obligations from issued bonds

Grupo Aval and some of its subsidiaries have been authorized by the Superintendency of Finance and by the applicable regulatory entities in other jurisdictions to issue either bonds or general guarantee bonds. The bonds issued by Grupo Aval and subsidiaries are non-guaranteed and represent exclusively the obligations of each of the issuers.

The detail of issued bonds as of December 31, 2021 and 2020, by issuance date and maturity date was as follows:

December

Issuer

Issue Date

31, 2021

31, 2020

Maturity Date

Interest Rate

Local Currency

Banco Av. Villas S.A.

23/02/2021

Ps.

475,949

Ps.

—

Between 23/02/2024 and 23/02/2026

CPI + 0.71% to 1.36%

Banco de Bogotá S.A.

Between 24/09/2020 and 10/02/2021

902,331

300,011

Between 24/09/2023 and 10/02/2026

CPI + 1.16%; IBR + 1.14% and Fix Between 3.40% and 4.75%

Banco de Occidente S.A

Between 09/02/2012 and 20/08/2020

2,685,078

3,023,809

Between 09/02/2022 and 14/12/2032

CPI + 1.75% to 4.65%; IBR + 1.37% and Fix Between 5.71% and 6.49%

Corporación Financiera Colombiana S.A.

Between 27/08/2009 and 20/10/2021

3,754,128

3,287,717

Between 11/03/2022 and 19/11/2045

CPI + 1.75% to 5.99%; Fix Between 3.77% and 7.10%

Banco Popular S.A

Between 12/10/2016 and 11/11/2021

2,518,982

1,652,087

Between 13/02/2022 and 04/02/2027

CPI + 2.58% to 4.13%; IBR + 1.59% to 2.61% and Fix Between 5.88% and 8.10%

Grupo Aval Acciones y Valores S.A.

Between 03/12/2009 and 14/11/2019

1,132,101

1,129,634

Between 14/11/2024 and 28/06/2042

CPI + 3.69% to 5.20% and Fix 6.42%

Peso denominated Total

Ps.

11,468,569

Ps.

9,393,258

Foreign Currency

Banco de Bogotá S.A. Under rule 144A.

Between 19/02/2013 and 03/08/2017

8,509,886

7,327,946

Between 19/02/2023 and 03/08/2027

Fix Between 4.38% to 6.25%

BAC Credomatic

El Salvador

Between 25/05/2017 and 29/09/2021

421,097

467,262

Between 25/05/2022 and 19/08/2024

Fix Between 4.70% to 5.85%

Honduras

Between 11/04/2019 and 15/12/2021

334,127

306,129

Between 25/02/2022 and 29/12/2025

Fix Between 3.20% to 9.50% and Banker rate Between 0.25% to 3.75%

Panamá

Between el 11/09/2017 and 15/12/2021

1,569,444

1,713,174

Between el 21/01/2022 and 30/06/2026

Fix Between 2.00% to 5.00%

BAC Credomatic Total

Ps.

2,324,668

Ps.

2,486,566

Banco Bogotá and BAC Credomatic Total

Ps.

10,834,554

Ps.

9,814,512

Grupo Aval Limited

Between 26/09/2012 and 04/02/2020

7,971,392

6,845,536

Between 26/09/2022 and 04/02/2030

Fix Between 4.38% to 4.75%

Promigas S.A. and Gases del Pacífico S.A.C. Under rule 144A.

Between 16/10/2019 and 22/10/2020

1,983,417

1,707,490

Between 16/10/2029 and 22/10/2029

Fix 3.75%

Foreign Currency Total

Ps.

20,789,363

Ps.

18,367,539

Total of Bonds

Ps.

32,257,932

Ps.

27,760,797

The amount of issued bonds due over 12 months as of December 31, 2021 was Ps. 25,521,295 and as of December 31, 2020 was Ps. 26,467,982.

Grupo Aval had no defaults on principal or interest payments or other breaches with respect to its liabilities during the years ended 31 December 2021 and 2020, and Grupo Aval is complying with the related covenants agreed with investors and debtors.

21.3 Analysis of changes in financing during the year

Reconciliation of movements of liabilities to cash flows arising from financing activities:


Reconciliation of movements of liabilities to cash flows arising from financing activities

			Liabilities						Equity						Total
	Notes		Dividends payable		Bonds issued		Leases contracts		Subscribed and paid-in capital		Additional paid-in capital		Non-controlling interest
Balance at December 31, 2018		Ps.	535,310	Ps.	20,140,351	Ps.	1,023,589	Ps.	22,281	Ps.	8,472,336	Ps.	11,764,639	Ps.	41,958,506
Change in accounting policies on january 1, 2019			—		—		2,225,545		—		—		—		2,225,545
Cash flows from financing activities:
Dividens paid to shareholders			(1,266,920)		—		—		—		—		—		(1,266,920)
Dividens paid to non-controlling interest	26		(804,302)		—		—		—		—		—		(804,302)
Issuance of debt securities			—		3,130,254		—		—		—		—		3,130,254
Interest issuance of debt securities			—		18,633		—		—		—		—		18,633
Payment of outstanding debt securities			—		(1,544,225)		—		—		—		—		(1,544,225)
Leases contracts			—		—		(362,334)		—		—		—		(362,334)
Equity transaction			—		—		—		—		(26,570)		(40,527)		(67,097)
Net cash used in financing activities			(2,071,222)		1,604,662		(362,334)		—		(26,570)		(40,527)		(895,991)
Cash flows from operating activities:
Accrued interest			—		1,220,437		205,627		—		—		—		1,426,064
Interest paid			—		(1,103,218)		(194,589)		—		—		—		(1,297,807)
Other Changes			2,167,023		56,036		135,664		—		—		(830,160)		1,528,563
Total liabilities related to other changes			2,167,023		173,255		146,702		—		—		(830,160)		1,656,820
Total equity related to other changes			—		—		—		—		—		2,603,750		2,603,750
Balance at December 31, 2019		Ps.	631,111	Ps.	21,918,268	Ps.	3,033,502	Ps.	22,281	Ps.	8,445,766	Ps.	13,497,702	Ps.	47,548,630
Cash flows from financing activities:
Dividens paid to shareholders			(1,330,241)		—		—		—		—		—		(1,330,241)
Dividens paid to non-controlling interest	26		(946,034)		—		—		—		—		—		(946,034)
Issuance of debt securities			—		5,733,500		—		—		—		—		5,733,500
Interest issuance of debt securities			—		(7,180)		—		—		—		—		(7,180)
Payment of outstanding debt securities			—		(2,185,636)		—		—		—		—		(2,185,636)
Leases contracts			—		—		(429,636)		—		—		—		(429,636)
Redemption of preferred shares			—		—		—		—		—		(379,320)		(379,320)
Equity transaction			—		—		—		—		(546)		(50,458)		(51,004)
Net cash used in financing activities			(2,276,275)		3,540,684		(429,636)		—		(546)		(429,778)		404,449
Cash flows from operating activities:
Accrued interest			—		1,545,009		210,816		—		—		—		1,755,825
Interest paid			—		(1,503,675)		(191,924)		—		—		—		(1,695,599)
Other Changes			2,294,038		2,260,511		402,975		—		—		(957,390)		4,000,134
Total liabilities related to other changes			2,294,038		2,301,845		421,867		—		—		(957,390)		4,060,360
Total equity related to other changes			—		—		—		—		25,650		2,671,725		2,697,375
Balance at December 31, 2020		Ps.	648,874	Ps.	27,760,797	Ps.	3,025,733	Ps.	22,281	Ps.	8,470,870	Ps.	14,782,259	Ps.	54,710,814
Cash flows from financing activities:
Dividens paid to shareholders			(1,230,841)		—		—		—		—		—		(1,230,841)
Dividens paid to non-controlling interest	26		(913,356)		—		—		—		—		—		(913,356)
Issuance of debt securities			—		2,932,471		—		—		—		—		2,932,471
Interest issuance of debt securities			—		(1,191)		—		—		—		—		(1,191)
Payment of outstanding debt securities			—		(1,631,318)		—		—		—		—		(1,631,318)
Leases contracts			—		—		(472,084)		—		—		—		(472,084)
Redemption of preferred shares			—		—		—		—		—		(29,751)		(29,751)
Equity transaction			—		—		—		—		—		120		120
Net cash used in financing activities			(2,144,197)		1,299,962		(472,084)		—		—		(29,631)		(1,345,950)
Cash flows from operating activities:
Accrued interest			—		1,631,055		173,214		—		—		—		1,804,269
Interest paid			—		(1,590,137)		(168,966)		—		—		—		(1,759,103)
Other Changes			2,093,857		3,156,256		324,260		—		—		(823,551)		4,750,822
Total liabilities related to other changes			2,093,857		3,197,174		328,508		—		—		(823,551)		4,795,988
Total equity related to other changes			—		—		—		—		19,929		2,528,917		2,548,846
Balance at December 31, 2021		Ps.	598,534	Ps.	32,257,933	Ps.	2,882,157	Ps.	22,281	Ps.	8,490,799	Ps.	16,457,994	Ps.	60,709,698