Currently viewing: 7. BORROWINGS | Next: 7. RELATED PARTIES
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 period-end.
| 30 November 2024 Unaudited R'000 |
31 May 2024 Audited R'000 |
||
|---|---|---|---|
| Interest-bearing borrowings | 4 384 140 | 4 075 531 | |
| Non-interest-bearing borrowings | 719 | 719 | |
| Total borrowings | 4 384 859 | 4 076 250 | |
| Amounts included in non-current portion of borrowings | 2 617 195 | 2 910 060 | |
| Amounts included in current portion of borrowings | 1 767 664 | 1 166 190 | |
| Categories of borrowings: | |||
| Airtime repurchase obligations | 127 435 | 474 831 | |
| Class A Preference shares | 194 413 | 180 254 | |
| Facilities | 4 052 201 | 3 411 018 | |
| Other third-party borrowings | 10 810 | 10 147 | |
| Total borrowings | 4 384 859 | 4 076 250 |
The Group did not default on any loans or breach any terms of the agreements during the period.
The carrying value of all borrowings approximates their fair value due to these balances bearing interest at market-related rates.
Total borrowings of R4.39 billion include working capital loan facilities of R1.160 billion, granted by Investec, Rand Merchant Bank, and Future Growth, to TPC, of which R1.052 billion had been utilised as of 30 November 2024.
In November 2024, TPC successfully renegotiated an extension of these facilities, extending the maturity date from 30 September 2025 to 31 March 2027, while maintaining the facility amount at R1.160 billion.
The facilities bear interest at the prime rate plus 1%.
Changes in liabilities arising from financing activities
| Borrowings due within one year R'000 |
Borrowings due after one year R'000 |
Total R'000 |
||
| Closing balance as at 31 May 2023 | 2 230 355 | 1 842 765 | 4 073 120 | |
| Movement between current and non-current | 917 027 | (917 027) | — | |
| Loan modification | — | (20 682) | (20 682) | |
| Interest-bearing borrowings raised | 691 515 | 1 976 174 | 2 667 689 | |
| Interest accrued on interest-bearing borrowings | 805 762 | 28 830 | 834 592 | |
| Interest-bearing borrowings capital repaid | (2 674 283) | — | (2 674 283) | |
| Interest-bearing borrowings interest repaid | (804 186) | — | (804 186) | |
| Closing balance as at 31 May 2024 | 1 166 190 | 2 910 060 | 4 076 250 | |
| Movement between current and non-current | 307 023 | (307 023) | — | |
|---|---|---|---|---|
| Loan modification | — | 2 203 | 2 203 | |
| Interest-bearing borrowings raised | 750 000 | — | 750 000 | |
| Interest accrued on interest-bearing borrowings | 400 777 | 11 955 | 412 732 | |
| Interest-bearing borrowings capital repaid | (456 213) | — | (456 213) | |
| Interest-bearing borrowings interest repaid | (400 113) | — | (400 113) | |
| Closing balance as at 30 November 2024 | 1 767 664 | 2 617 195 | 4 384 859 |
