Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 110

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 5
Chunk 110
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 in the Notes to the Issuer’s Consolidated Financial Statements.
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Senior Notes due 2050
On January 21, 2020, the Company issued a US$300 million Senior Bond in the U.S. market under 144A/Reg S regulations. These notes are unsecured obligations with the whole principal amount due in 2050, with an annual coupon rate of 3.950%. The proceeds from these notes were used to finance general corporate purposes which could include an eventual payment of existing liabilities, financing of potential acquisitions and improvement of the company’s liquidity position.
At the same time, derivative contracts (cross currency swaps) have been entered into to fully redenominate financial obligations denominated in U.S. dollars to UF and CLP.
Senior Notes due 2028
In September 2023, the Company issued a 5-year corporate bond for CHF$170 million in the Swiss market under local regulations. These notes are unsecured obligations with the whole principal amount due in 2028, with an annual fixed rate of 2.7175%. The proceeds from these notes were used mainly to refinance the Company’s 2023 Senior Unsecured Bond and to finance investments in Brazil.
In parallel, derivatives have been contracted (cross currency swaps) by Rio de Janeiro Refrescos Ltda., a subsidiary of Embotelladora Andina in Brazil, to effectively redenominate CHF$170 million Swiss francs to Brazilian reais.

C.   RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES
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Given the nature of the business and the support provided by The Coca-Cola Company as franchisor to its bottlers, the Company’s research and development expenses are not meaningful. For more information on patents and licenses, see “Item 4. Information on the Company – Bottler Agreements.”

D.   TREND INFORMATION
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Our results will likely continue to be influenced by changes in the level of consumer demand in the countries in which we operate, resulting from governmental economic measures that are or may be implemented in the future. Additionally, the main raw materials used in the production of soft drinks, such as sugar and resin, may experience price increases in the future. Such price increases may affect our results if we are unable to pass on the cost increases to the sales price of our products due to depressed consumer demand and/or heightened competition.
Increased competition from low-price brands is another factor that could limit our ability to grow, and thus