IBERSOL • 2023 Integrated Management Report

Consolidated Financial Statements 8.2. Bank Debt Accounting policies Borrowings are recorded under liabilities at the nominal value received, net of issue costs, which corresponds to their respective fair value on that date. Subsequently, they are measured using the amortized cost method, with the corresponding financial charges calculated in accordance with the effective interest rate. The effective interest rate is the rate that discounts future payments over the expect- ed life of the financial instrument to the net carrying amount of the financial liability. As at 31 December 2023 and 2022 current and non-current borrowings had the fol- lowing detail: dec/2023 dec/2022 Non-current Bank loans 7 863 527 29 834 860 Commercial paper 4 800 000 16 400 000 12 663 527 46 234 860 Current Bank overdrafts - - Bank loans 4 110 369 12 274 609 Commercial paper 11 680 148 11 572 417 15 790 517 23 847 026 Total borrowings 28 454 044 70 081 886 Average cost 2,6% 2,6% The maturity of non-current bank borrowings and commercial paper is as follows: dec/2023 dec/2022 between 1 and 2 years 11 477 304 20 877 703 between 2 and 5 years 1 186 222 24 578 196 > 5 years - 778 960 Total non current borrowings 12 663 527 46 234 860 For Commercial Paper Programs (CPP), when there is a termination date, we consider maturity on that date, regardless of the terms for which they are contracted. There are commercial paper financing agreements that include cross default clauses. Such clauses refer to contractual non-compliance in other contracts or tax non- compliance, in which case it does not occur. 472