Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred, when the relevant contracts are entered into. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest rate method.

Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled or expired.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after year-end.

2022
R’000
2021
R’000
Interest-bearing borrowings 2 567 752 1 706 163
Non-interest-bearing borrowings 719 989
2 568 471 1 707 152
Amounts included in non-current portion of borrowings 474 471 2 778
Amounts included in current portion of borrowings 2 094 000 1 704 374

The table below details the facilities drawn upon at 31 May 2022.

Available facility   Facility utilised
2022
R’000
2021
R’000
2022
R’000
2021
R’000
Mezzanine facility 410 532 410 532
Facility A 1 125 000 1 450 000 941 584 1 292 637
African Bank 1 900 000 1 623 342
3 025 000 1 860 532 2 564 926 1 703 169

The Group did not default on any loans or breach any terms of the underlying agreements during the year.

Changes in liabilities arising from financing activities

Borrowings 
due within 
one year 
R’000
 
Borrowings 
due after 
one year 
R’000
 
Total 
R’000
 
Opening balance as at 1 June 2020  2 316 383  2 778  2 319 161 
Acquisition of subsidiary   726  —  726 
Non-interest-bearing borrowings raised   270  —  270 
Non-interest-bearing borrowings repaid   (13 959) —  (13 959)
Interest-bearing borrowings raised   152 007  —  152 007 
Interest accrued on interest-bearing borrowings*  152 331  —  152 331 
Interest-bearing borrowings capital repaid  (751 053) —  (751 053)
Interest-bearing borrowings interest repaid  (152 331) —  (152 331)
Closing balance as at 31 May 2021   1 704 374  2 778  1 707 152 
Non-interest-bearing borrowings raised  —  —  — 
Non-interest-bearing borrowings repaid  (270) —  (270)
Interest-bearing borrowings raised through the acquisition of non-controlling interest  104 950  —  104 950 
Interest-bearing borrowings raised  1 155 448  471 693  1 627 141 
Interest accrued on interest-bearing borrowings*  183 280  —  183 280 
Interest-bearing borrowings capital repaid  (870 502) —  (870 502)
Interest-bearing borrowings interest repaid  (183 280) —  (183 280)
Closing balance as at 31 May 2022  2 094 000  474 471  2 568 471 
* Of the total interest accrued on interest-bearing borrowings, R17 million (2021: R59 million) is accounted for as finance costs incurred in the generation of revenue on the Group income statement. The balance is accounted for in finance costs on the Group income statement.