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Borrowings
 3 Months Ended
Sep. 30, 2023
Borrowings [Abstract]  
Borrowings
8.
 
Borrowings
Refer to
 
Note 12
 
to the
 
Company’s
 
audited consolidated
 
financial statements
 
included in
 
its Annual
 
Report on
 
Form 10-K
 
for
the year ended June 30, 2023, for additional information regarding
 
its borrowings.
South Africa
The
 
amounts
 
below
 
have
 
been
 
translated
 
at
 
exchange
 
rates
 
applicable
 
as
 
of
 
the
 
dates
 
specified.
 
The
 
3-month
 
Johannesburg
Interbank Agreed Rate (“JIBAR”) on September 30, 2023, was
8.33
%. The prime rate on September 30, 2023, was
11.75
%.
RMB Facilities, as amended, comprising a short-term facility (Facility E) and long-term
 
borrowings
Long-term borrowings - Facility G and Facility H
As
 
of
 
September
 
30,
 
2023,
 
the
 
Company’s
 
had
 
utilized
 
ZAR
10.0
 
million
 
($
0.5
 
million)
 
of
 
its
 
ZAR
200
 
million
 
Facility
 
G
revolving credit facility.
 
The interest rate on this facility as of September 30, 2023, was JIBAR plus
5.50
%.
Available short-term facility -
 
Facility E
As of September
 
30, 2023, the
 
aggregate amount of
 
the Company’s
 
short-term South African
 
overdraft facility with
 
RMB was
ZAR
1.4
 
billion ($
74.0
 
million). As of September 30, 2023, the Company had utilized approximately ZAR
0.4
 
billion ($
19.8
 
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 interest rate on this facility is equal to the
 
prime rate.
 
Connect Facilities, comprising long-term borrowings and a short-term facility
As of September 30, 2023, the
 
Connect Facilities include (i) an overdraft facility (general
 
banking facility) of ZAR
205.0
 
million
(of which ZAR
170.0
 
million has been utilized); (ii) Facility A of
 
ZAR
700.0
 
million; (iii) Facility B of ZAR
550.0
 
million (both fully
utilized); and (iv) an asset-backed facility of ZAR
200.0
 
million (of which ZAR
152.5
 
million has been utilized).
CCC Revolving Credit Facility, comprising
 
long-term borrowings
As of
 
September
 
30,
 
2023,
 
the amount
 
of the
 
CCC Revolving
 
Credit Facility
 
was ZAR
300.0
 
million (of
 
which
 
ZAR
205.5
million has been utilized).
 
Interest on the Revolving Credit Facility
 
is payable on the last business
 
day of each calendar month
 
and is
based on the South African prime rate in effect from time to time plus
 
a margin of
0.95
% per annum.
 
RMB facility, comprising indirect facilities
As of September
 
30, 2023, the aggregate
 
amount of the Company’s
 
short-term South African
 
indirect credit facility
 
with RMB
was ZAR
135.0
 
million ($
7.1
 
million), which includes facilities for guarantees, letters of credit and forward exchange contracts. As
 
of
September
 
30, 2023
 
and
 
June 30,
 
2023,
 
the
 
Company
 
had utilized
 
approximately
 
ZAR
33.1
 
million
 
($
1.7
 
million)
 
and
 
ZAR
33.1
million ($
1.8
 
million), respectively,
 
of its indirect and derivative facilities of
 
ZAR
135.0
 
million (June 30, 2023: ZAR
135.0
 
million)
to enable the bank to issue guarantees, letters of credit and forward exchange
 
contracts (refer to Note 19).
Nedbank facility, comprising short-term facilities
As of
 
September 30, 2023,
 
the aggregate amount
 
of the Company’s short-term
 
South African
 
credit facility with
 
Nedbank Limited
was ZAR
156.6
 
million ($
8.3
 
million). The credit facility represents indirect and derivative facilities
 
of up to ZAR
156.6
 
million ($
8.3
million), which include guarantees, letters of credit and forward exchange
 
contracts.
As of September 30, 2023 and June 30, 2023, the Company had utilized approximately ZAR
2.1
 
million ($
0.1
 
million) and ZAR
2.1
 
million
 
($
0.1
 
million),
 
respectively,
 
of
 
its
 
indirect
 
and
 
derivative
 
facilities
 
of
 
ZAR
156.6
 
million
 
(June
 
30,
 
2023:
 
ZAR
156.6
million) to enable the bank to issue guarantees, letters of credit and forward
 
exchange contracts (refer to Note 19).
 
8.
 
Borrowings (continued)
Movement in short-term credit facilities
Summarized below are the
 
Company’s short-term facilities as of
 
September 30, 2023, and
 
the movement in
 
the Company’s short-
term facilities from as of June 30, 2023 to as of September 30, 2023:
RMB
RMB
RMB
Nedbank
Facility E
Indirect
Connect
Facilities
Total
Short-term facilities available as of September 30, 2023
$
73,982
$
7,134
$
10,833
$
8,273
$
100,222
Overdraft
 
-
-
10,833
-
10,833
Overdraft restricted as to use for ATM
 
funding only
73,982
-
-
-
73,982
Indirect and derivative facilities
 
-
7,134
-
8,273
15,407
Movement in utilized overdraft facilities:
 
Restricted as to use for ATM
 
funding only
23,021
-
-
-
23,021
No restrictions as to use
 
-
-
9,025
-
9,025
Balance as of June 30, 2023
23,021
-
9,025
-
32,046
Utilized
 
59,574
-
-
-
59,574
Repaid
(62,793)
-
-
-
(62,793)
Foreign currency adjustment
(1)
(48)
-
(42)
-
(90)
Balance as of September 30, 2023
19,754
-
8,983
-
28,737
Restricted as to use for ATM
 
funding only
19,754
-
-
-
19,754
No restrictions as to use
 
$
-
$
-
$
8,983
$
-
$
8,983
Interest rate as of September 30, 2023 (%)
(2)
11.75
-
11.65
-
Movement in utilized indirect and derivative facilities:
Balance as of June 30, 2023
$
-
$
1,757
$
-
$
112
$
1,869
Foreign currency adjustment
(1)
-
(8)
-
-
(8)
Balance as of September 30, 2023
$
-
$
1,749
$
-
$
112
$
1,861
(1) Represents the effects of the fluctuations between the
 
ZAR and the U.S. dollar.
(2) Facility E interest set at prime and the Connect facility at prime less
0.10
%.
 
8.
 
Borrowings (continued)
Movement in long-term borrowings
Summarized below is
 
the movement in the
 
Company’s long-term
 
borrowing from as of
 
as of June 30, 2023
 
to as of September
30, 2023:
Facilities
G & H
A&B
CCC
Asset
backed
Total
Included in current
$
-
$
-
$
-
$
3,663
$
3,663
Included in long-term
48,965
64,436
11,802
4,252
129,455
Opening balance as of June 30, 2023
48,965
64,436
11,802
7,915
133,118
Facilities utilized
1,372
-
-
1,099
2,471
Facilities repaid
(797)
-
(904)
(928)
(2,629)
Non-refundable fees paid
-
-
-
-
-
Non-refundable fees amortized
202
12
13
-
227
Capitalized interest
1,756
-
-
-
1,756
Capitalized interest repaid
(58)
-
-
-
(58)
Foreign currency adjustment
(1)
(297)
(293)
(50)
(28)
(668)
Closing balance as of September 30, 2023
51,143
64,155
10,861
8,058
134,217
Included in current
-
-
-
3,630
3,630
Included in long-term
51,143
64,155
10,861
4,428
130,587
Unamortized fees
(397)
(210)
(53)
-
(660)
Due within 2 years
-
-
-
3,179
3,179
Due within 3 years
51,540
4,954
10,914
1,142
68,550
Due within 4 years
-
7,596
-
104
7,700
Due within 5 years
$
-
$
51,815
$
-
$
3
$
51,818
Interest rates as of September 30, 2023 (%):
13.83
12.08
12.70
12.50
Base rate (%)
8.33
8.33
11.75
11.75
Margin (%)
5.50
3.75
0.95
0.75
Footnote number
(2)
(3)
(4)
(5)
(1) Represents the effects of the fluctuations between the ZAR and the
 
U.S. dollar.
(2) Interest on Facility G
 
and Facility H is calculated based
 
on the 3-month JIBAR in
 
effect from time to time
 
plus a margin of,
from January 1, 2023:
 
(i)
5.50
% for as long as
 
the aggregate balance under
 
the Facilities is greater
 
than ZAR
800
 
million; (ii)
4.25
%
if the aggregate balance under the Facilities is equal to or less than ZAR
800
 
million, but greater than ZAR
350
 
million; or (iii)
2.50
%
if the aggregate balance under the Facilities is less than ZAR
350
 
million
(3) Interest on Facility A and Facility B is calculated based on JIBAR plus a margin,
 
of
3.75
%, in effect from time to time.
(4) Interest is charged at prime plus
0.95
% per annum on the utilized balance.
(5) Interest is charged at prime plus
0.75
% per annum on the utilized balance.
Interest expense incurred under the Company’s South African long-term borrowings and included in the
 
caption interest expense
on the condensed consolidated statement of operations during the three months ended September 30, 2023 and
 
2022, was $
4.0
 
million
and $
2.7
 
million, respectively.
 
Prepaid facility fees amortized
 
included in interest expense
 
during the three months
 
ended September
30, 2023
 
and 2022,
 
respectively,
 
were $
0.2
 
million and
 
$
0.2
 
million, respectively.
 
Interest expense
 
incurred under
 
the Company’s
K2020 and
 
CCC facilities
 
relates to
 
borrowings utilized
 
to fund
 
a portion
 
of the
 
Company’s
 
merchant finance
 
loans receivable
 
and
this
 
interest
 
expense
 
of
 
$
0.4
 
million
 
and
 
$
0.2
 
million,
 
respectively,
 
is
 
included
 
in
 
the
 
caption
 
cost
 
of
 
goods
 
sold,
 
IT
 
processing,
servicing and support on
 
the condensed consolidated statement
 
of operations for the
 
three months ended September
 
30, 2023 and
 
2022.