XML 26 R15.htm IDEA: XBRL DOCUMENT v3.21.2

Borrowings

3 Months Ended

Sep. 30, 2021

Borrowings [Abstract]

Borrowings

8.Borrowings

Refer to Note 11 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2021, for additional information regarding its borrowings.

South Africa

July 2017 Facilities, as amended, comprising long-term borrowings (all repaid) and a short-term facility (Facility E)

Available short-term facility - Facility E

On August 2, 2021, Net1 SA and RMB entered into a Letter of Amendment to increase Facility E from ZAR 1.2 billion to ZAR 1.4 billion ($92.6 million, translated at exchange rates applicable as of September 30, 2021). As at September 30, 2021, the Company had utilized approximately ZAR 0.8 billion ($51.6 million) of this overdraft facility. This overdraft facility may only be used to fund ATMs and therefore the overdraft utilized and converted to cash to fund the Company’s ATMs is considered restricted cash. The prime rate on September 30, 2021, was 7.0%.

Nedbank facility, comprising short-term facilities

As of September 30, 2021, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited was ZAR 406.6 million ($26.9 million). The credit facility comprises an overdraft facility of up to ZAR 250.0 million ($16.5 million), which may only be used to fund mobile ATMs and indirect and derivative facilities of up to ZAR 156.6 million ($10.4 million), which include guarantees, letters of credit and forward exchange contracts.

The Company has entered into cession and pledge agreements with Nedbank related to certain of its Nedbank credit facilities (the general banking facility and a portion of the indirect facility) and the Company has ceded and pledged certain bank accounts to Nedbank. The funds included in these bank accounts are restricted as they may not be withdrawn without the express permission of Nedbank. These funds, of ZAR 156.6 million ($10.4 million translated at exchange rates applicable as of September 30, 2021), are included within the caption restricted cash related to ATM funding and credit facilities to the Company’s unaudited condensed consolidated balance sheet as of September 30, 2021. As of September 30, 2021, the interest rate on the overdraft facility was 5.9%.

As of September 30, 2021 and June 30, 2021, the Company had utilized approximately ZAR 156.6 million ($10.4 million) and ZAR 156.6 million ($10.9 million), respectively, of its indirect and derivative facilities of ZAR 156.6 million (June 30, 2021: ZAR 156.6 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts, in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 19).

Movement in short-term credit facilities

Summarized below are the Company’s short-term facilities as of September 30, 2021, and the movement in the Company’s short-term facilities from as of June 30, 2021 to as of September 30, 2021, as well as the respective interest rates applied to the borrowings as of September 30, 2021:

							South Africa						Total
						RMB			Nedbank
	Short-term facilities available as of September 30, 2021					$	92,623		$	26,898		$	119,521
		Overdraft restricted as to use for ATM funding only					92,623			16,540			109,163
		Indirect and derivative facilities					-			10,358			10,358
	Interest rate (%), based on South African prime rate						7.00
	Interest rate (%), based on South African prime rate less 1.15%									5.85
	Movement in utilized overdraft facilities:
		Balance as of June 30, 2021					14,245			-			14,245
			Utilized				137,558			1,347			138,905
			Repaid				(97,586)			(1,322)			(98,908)
			Foreign currency adjustment(1)				(2,649)			(25)			(2,674)
				Balance as of September 30, 2021			51,568			-			51,568
					Restricted as to use for ATM funding only		51,568			-			51,568
	Movement in utilized indirect and derivative
	facilities:
		Balance as of June 30, 2021(2)					-			10,947			10,947
			Utilized				-			4,311			4,311
			Foreign currency adjustment(1)				-			(4,900)			(4,900)
				Balance as of September 30, 2021(2)		$	-		$	10,358		$	10,358

(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar.

X

- References

No definition available.

+ Details

Name:	us-gaap_DebtDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

+ Details

Name:	us-gaap_DebtDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration