Currently viewing: Borrowings | Next: Financial instruments at fair value through profit or loss
| 2023 R'000 |
2022 R'000 |
||
|---|---|---|---|
| Interest-bearing borrowings | 4 070 401 | 2 567 752 | |
| Non-interest-bearing borrowings | 2 719 | 719 | |
| 4 073 120 | 2 568 471 | ||
| Amounts included in non-current portion of borrowings | 1 842 765 | 474 471 | |
| Amounts included in current portion of borrowings | 2 230 355 | 2 094 000 | |
| Categories of borrowings: | |||
| Airtime sale and repurchase obligations | 988 245 | — | |
| Class A Preference Shares | 171 453 | — | |
| Facilities | 2 902 722 | 2 564 926 | |
| Other third-party borrowings | 10 700 | 3 545 | |
| Total borrowings | 4 073 120 | 2 568 471 |
| Airtime sale and repurchase obligations | Preference Share A* | |||||
| From lenders R'000 |
From other third parties R'000 |
Total R'000 |
R'000 | |||
|---|---|---|---|---|---|---|
| Opening balance as at 1 June 2022 | — | — | ||||
| Long-term borrowings raised | 1 146 707 | 217 391 | 1 364 098 | 165 966 | ||
| Interest expense | 276 003 | 31 031 | 307 034 | 12 534 | ||
| Gain on modification of financial liability | — | — | — | (7 047) | ||
| Repayments | (565 391) | (117 496) | (682 887) | — | ||
| Closing balance as at 31 May 2023 | 857 319 | 130 926 | 988 245 | 171 453 | ||
| Amounts included in current portion of borrowings | 598 879 | 130 926 | 729 805 | — | ||
| Amounts included in non-current portion of borrowings | 258 440 | — | 258 440 | 171 453 | ||
| Funds borrowed (R'000) | 1 238 707 | 217 391 | 165 966 | |||
| Transaction costs (R'000) | 92 000 | — | — | |||
| Effective interest rate (%) | 40.4 | 25.75 | 11 | |||
| * | The preference dividends are indexed to 15% of the ‘upside’ realised by TPC on the Debt Funding to Cell C (refer to “Loans to Cell C” in the investments in and loans to Cell C Limited note). The liability has been modified for the change in expectations of the future dividends payable based on the updated expectation of the future cash flows related to the Debt Funding. |
The airtime sale and repurchase from lenders represents a financing transaction, with the airtime as security, together with the issue of the Class A, and Class B Preference Shares, which provide the lenders with additional compensation for their risk. As such the amount of borrowings was attributed to these three elements at their respective fair values.
The airtime sale and repurchase loan, and the Class A Preference Shares were recognised initially at their fair values less transaction costs and have been accounted for as financial liabilities at amortised cost. Given that the indexation of the cash flows under the Class B Preference Shares to a 5% shareholding in Cell C results in them containing an embedded derivative which would otherwise need to be stripped out and accounted for separately, the Class B Preference Shares have been designated to be financial liabilities at fair value through profit or loss. Refer to the financial instruments at fair value through profit or loss note for further details on the accounting treatment of the Class B Preference Shares.
The airtime sale and repurchase from third-party represents a financing transaction, with the airtime as security.
The airtime sale and repurchase loan was recognised initially at its fair value less transaction costs and has been accounted for as a financial liability at amortised cost.
| Facility utilised | |||
| Facility | 2023 R'000 |
2022 R'000 |
|
|---|---|---|---|
| General banking facility – Investec | 70 722 | — | |
| General banking facility – RMB | 32 000 | — | |
| Revolving Facility A – Investec | 660 000 | 941 584 | |
| Revolving Facility B – RMB | 240 000 | — | |
| African Bank | 1 900 000 | 1 623 342 | |
| Total borrowings | 2 902 722 | 2 564 926 | |
The Group did not default on any loans or breach any terms of the underlying agreements during the period.
The fair value of the borrowings approximates their carrying amounts.
| Borrowings due within one year R'000 |
Borrowings due after one year R'000 |
Total R'000 |
||
| Opening balance as at 1 June 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 | |
| Acquisition of subsidiaries interest-bearing borrowings | 12 672 | — | 12 672 | |
|---|---|---|---|---|
| Acquisition of subsidiaries non-interest-bearing borrowings | 2 000 | — | 2 000 | |
| Movement between current and non-current | (156 964) | 156 964 | — | |
| Loan forgiveness | — | (2 778) | (2 778) | |
| Loan modification | — | (7 047) | (7 047) | |
| Interest-bearing borrowings raised | 701 479 | 1 207 966 | 1 909 445 | |
| Interest accrued on interest-bearing borrowings* | 630 221 | 13 189 | 643 410 | |
| Interest-bearing borrowings capital repaid | (422 832) | — | (422 832) | |
| Interest-bearing borrowings interest repaid | (630 221) | — | (630 221) | |
| Closing balance as at 31 May 2023 | 2 230 355 | 1 842 765 | 4 073 120 |
| * | Of the total interest accrued on interest-bearing borrowings, Rnil (2022: R17 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. |
The table below analyses the undiscounted cash flows for the Group's financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date.
| Less than one month or on demand R'000 |
More than one month but not exceeding one year R'000 |
Payable in More than one year but not exceeding two years R'000 |
More than two years but not exceeding five years R'000 |
More than five years R'000 |
||
|---|---|---|---|---|---|---|
| 2023 | ||||||
| Airtime repurchase obligations – lenders | 70 192 | 772 109 | 280 544 | — | — | |
| Airtime repurchase obligations – other third parties | 14 687 | 132 183 | — | — | — | |
| Class A Preference Shares | — | — | — | 292 621 | — | |
| Other interest-bearing borrowings | 28 323 | 1 681 578 | 513 448 | 842 722 | — | |
| Non-interest-bearing borrowings | 2 719 | — | — | — | — | |
| Total | 115 921 | 2 585 870 | 793 992 | 1 135 343 | — | |
| 2022 | ||||||
| Interest-bearing borrowings | 14 130 | 2 198 187 | 495 308 | — | — | |
| Non-interest-bearing borrowings | 719 | — | — | — | — | |
| Total | 14 849 | 2 198 187 | 495 308 | — | — |
