XML 25 R15.htm IDEA: XBRL DOCUMENT v3.24.0.1
Borrowings
 6 Months Ended
Dec. 31, 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”),
 
the
 
rate at
 
which
 
private sector
 
banks borrow
 
funds from
 
the
 
South
 
African Reserve
 
Bank,
 
on
December 31, 2023, was
8.40
%. The prime rate, the benchmark
 
rate at which private sector banks
 
lend to the public in South Africa,
on December 31, 2023, was
11.75
%.
 
8.
 
Borrowings (borrowings)
South Africa (continued)
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
 
December
 
31,
 
2023,
 
the
 
Company’s
 
had
 
utilized
 
ZAR
115.0
 
million
 
($
6.3
 
million)
 
of
 
its
 
ZAR
200
 
million
 
Facility
 
G
revolving credit facility.
 
The interest rate on this facility as of December 31, 2023, was JIBAR plus
5.50
%.
 
On November 24, 2023, the Company,
 
through its wholly owned subsidiary,
 
Lesaka Technologies
 
Proprietary Limited (“Lesaka
SA”), entered into an Amendment and Restatement Agreement (the “Amendment”), which includes an Amended and Restated Senior
Facility G Agreement (“Facility
 
G Agreement”) and an
 
Amended and Restated
 
Senior Facility H Agreement
 
(“Facility H Agreement”)
(collectively, the “Loan Documents”) with FirstRand Bank Limited (acting through its Rand Merchant Bank division) (“RMB” or the
“Lenders”).
The Loan Documents were amended to include a Look Through Leverage (“LTL”)
 
ratio, as defined in the Loan Documents, and
expressed as times (“x”), to calculate the margin used in the determination of the interest rate. The LTL ratio is calculated as the Total
Attributable Net Debt,
 
as defined in the
 
Loan Documents, to the
 
Total Attributable
 
EBITDA, as defined in
 
the Loan Documents,
 
for
the measurement period ending on a specified date.
Interest on Facility G and Facility H is based on the 3-month Johannesburg Interbank Agreed Rate (“JIBAR”) in effect from time
to time plus a margin,
 
which as a result of the
 
Amendment, from October 1,
 
2023, will be calculated as: (i)
5.50
% if the LTL
 
ratio is
greater than 3.50x; (ii)
4.75
% if the LTL
 
ratio is less than 3.50x but
 
greater than 2.75x; (iii)
3.75
% if the LTL
 
ratio is less than 2.75x
but greater than 1.75x; or (iv)
2.50
% if the LTL ratio
 
is less than 1.75x.
The Company used cash proceeds
 
of ZAR
64.2
 
million ($
3.5
 
million) received from the
 
sale of Finbond shares (refer
 
to Note 5)
to repay capitalized interest under Facility G and Facility H.
Available short-term facility -
 
Facility E
As of
 
December 31,
 
2023, the
 
aggregate amount
 
of the
 
Company’s
 
short-term South
 
African overdraft
 
facility with
 
RMB was
ZAR
1.4
 
billion ($
76.5
 
million). As of December 31,
 
2023, the Company had utilized ZAR
0.4
 
billion ($
23.4
 
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.
 
On January
 
22, 2024, the
 
Company,
 
through Lesaka SA,
 
and RMB, entered
 
into a Letter
 
of Amendment
 
to decrease the
 
Senior
Facility E from ZAR
1.4
 
billion to ZAR
0.9
 
billion ($
49.2
 
million translated at exchange rates applicable as of December 31, 2023).
Connect Facilities, comprising long-term borrowings and a short-term facility
As of December 31, 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
157.1
 
million has been utilized).
CCC Revolving Credit Facility, comprising
 
long-term borrowings
As of
 
December
 
31,
 
2023,
 
the amount
 
of
 
the
 
CCC Revolving
 
Credit
 
Facility
 
was ZAR
300.0
 
million
 
(of
 
which
 
ZAR
196.5
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 December
 
31, 2023, the
 
aggregate amount
 
of the Company’s
 
short-term South
 
African indirect credit
 
facility with RMB
was ZAR
135.0
 
million ($
7.4
 
million), which includes facilities for guarantees, letters of credit and forward exchange contracts. As
 
of
December 31, 2023
 
and June
 
30, 2023, the
 
Company had utilized
 
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).
 
8.
 
Borrowings (borrowings)
South Africa (continued)
Nedbank facility, comprising short-term facilities
As of December
 
31, 2023, the
 
aggregate amount of the
 
Company’s short-term South African credit
 
facility with Nedbank
 
Limited
was ZAR
156.6
 
million ($
8.6
 
million). The credit facility represents indirect and derivative facilities
 
of up to ZAR
156.6
 
million ($
8.6
million), which include guarantees, letters of credit and forward exchange
 
contracts.
As of
 
December 31,
 
2023 and
 
June 30,
 
2023, the
 
Company had
 
utilized 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).
Movement in short-term credit facilities
Summarized below are the Company’s short-term facilities as
 
of December 31, 2023, and
 
the movement in the Company’s short-
term facilities from as of June 30, 2023 to as of December 31, 2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RMB
RMB
RMB
Nedbank
Facility E
Indirect
Connect
Facilities
Total
Short-term facilities available as of
December 31, 2023
$
76,510
$
7,378
$
11,203
$
8,556
$
103,647
Overdraft
 
-
-
11,203
-
11,203
Overdraft restricted as to use for
ATM
 
funding only
76,510
-
-
-
76,510
Indirect and derivative facilities
 
-
7,378
-
8,556
15,934
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
 
128,584
-
2
-
128,586
Repaid
(128,839)
-
(2)
-
(128,841)
Foreign currency
adjustment
(1)
641
-
266
-
907
Balance as of December 31, 2023
23,407
-
9,291
-
32,698
Restricted as to use for ATM
funding only
23,407
-
-
-
23,407
No restrictions as to use
 
$
-
$
-
$
9,291
$
-
$
9,291
Interest rate as of December 31,
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)
-
52
-
3
55
Balance as of December 31, 2023
$
-
$
1,809
$
-
$
115
$
1,924
(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 December
31, 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
8,072
-
537
2,419
11,028
Facilities repaid
(1,847)
-
(1,968)
(1,998)
(5,813)
Non-refundable fees paid
-
-
-
-
-
Non-refundable fees amortized
267
24
25
-
316
Capitalized interest
3,643
-
-
-
3,643
Capitalized interest repaid
(3,508)
-
-
-
(3,508)
Foreign currency adjustment
(1)
1,527
1,901
302
252
3,982
Closing balance as of December 31,
2023
57,119
66,361
10,698
8,588
142,766
Included in current
-
-
-
3,429
3,429
Included in long-term
57,119
66,361
10,698
5,159
139,337
Unamortized fees
(344)
(204)
(43)
-
(591)
Due within 2 years
-
-
-
3,797
3,797
Due within 3 years
57,463
6,832
10,741
1,266
76,302
Due within 4 years
-
59,733
-
96
59,829
Due within 5 years
$
-
$
-
$
-
$
-
$
-
Interest rates as of December 31, 2023
(%):
13.90
12.15
12.70
12.50
Base rate (%)
8.40
8.40
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 was
 
calculated based on
 
the 3-month JIBAR
 
in effect
 
from time to
 
time plus a margin
of, from
 
January 1,
 
2023 to
 
September 30,
 
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. From
 
October 1,
 
2023,
interest
 
is calculated as described above.
(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 December 31, 2023 and 2022, was $
4.1
 
million
and $
3.0
 
million, respectively.
 
Prepaid facility fees
 
amortized included
 
in interest expense
 
during the three
 
months ended December
31, 2023
 
and 2022,
 
respectively,
 
were $
0.1
 
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
 
$
0.3
 
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 December 31, 2023 and
 
2022.