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Borrowings
 9 Months Ended
Mar. 31, 2024
Borrowings [Abstract]  
Borrowings
Movement in short-term credit facilities
Summarized below
 
are the
 
Company’s
 
short-term facilities
 
as of
 
March 31,
 
2024, and
 
the movement
 
in the
 
Company’s
 
short-
term facilities from as of June 30, 2023 to as of March 31, 2024:
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
March 31, 2024,
 
was
8.35
%. The prime rate,
 
the benchmark rate at
 
which private sector banks
 
lend to the public
 
in South Africa, on
March 31, 2024, 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 March 31, 2024, the Company had not utilized any of its ZAR
200
 
million Facility G revolving credit facility.
 
The interest
rate on this facility as of March 31, 2024, 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 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)
during the nine months ended March 31, 2024, to repay capitalized interest under
 
Facility G and Facility H.
Available short-term facility -
 
Facility E
As of March 31, 2024,
 
the aggregate amount of
 
the Company’s
 
short-term South African overdraft
 
facility with RMB was ZAR
0.9
 
billion ($
47.7
 
million). As of March
 
31, 2024, the Company
 
had utilized ZAR
0.1
 
billion ($
4.3
 
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 March 31, 2024, 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
154.6
 
million has been utilized).
CCC Revolving Credit Facility, comprising
 
long-term borrowings
As of March 31, 2024,
 
the amount of the CCC Revolving
 
Credit Facility was ZAR
300.0
 
million (of which ZAR
241.0
 
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 March 31, 2024,
 
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
March 31, 2024 and June
 
30, 2023, the Company had
 
utilized ZAR
33.1
 
million ($
1.8
 
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 March
 
31, 2024, 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 March 31,
 
2024 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).
(1) Represents the effects of the fluctuations between the
 
ZAR and the U.S. dollar.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RMB
RMB
RMB
Nedbank
Facility E
Indirect
Connect
Facilities
Total
Short-term facilities available as of
March 31, 2023
$
47,680
$
7,152
$
10,860
$
8,294
$
73,986
Overdraft
 
-
-
10,860
-
10,860
Overdraft restricted as to use for
ATM
 
funding only
47,680
-
-
-
47,680
Indirect and derivative facilities
 
-
7,152
-
8,294
15,446
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
 
153,477
-
2
-
153,479
Repaid
(172,219)
-
(2)
-
(172,221)
Foreign currency
adjustment
(1)
(7)
-
(19)
-
(26)
Balance as of March 31, 2024
4,272
-
9,006
-
13,278
Restricted as to use for ATM
funding only
4,272
-
-
-
4,272
No restrictions as to use
 
$
-
$
-
$
9,006
$
-
$
9,006
Interest rate as of March 31, 2024
(%)
(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)
-
(3)
-
-
(3)
Balance as of March 31, 2024
$
-
$
1,754
$
-
$
112
$
1,866
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
-
2,915
3,439
14,426
Facilities repaid
(7,929)
-
(1,968)
(3,154)
(13,051)
Non-refundable fees paid
-
-
-
-
-
Non-refundable fees amortized
309
36
36
-
381
Capitalized interest
5,420
-
-
-
5,420
Capitalized interest repaid
(4,238)
-
-
-
(4,238)
Foreign currency adjustment
(1)
(232)
(130)
(19)
(8)
(389)
Closing balance as of March 31,
2024
50,367
64,342
12,766
8,192
135,667
Included in current
-
-
-
3,269
3,269
Included in long-term
50,367
64,342
12,766
4,923
132,398
Unamortized fees
(292)
(185)
(31)
-
(508)
Due within 2 years
-
1,656
-
3,592
5,248
Due within 3 years
50,659
6,953
12,797
1,180
71,589
Due within 4 years
-
55,918
-
108
56,026
Due within 5 years
$
-
$
-
$
-
$
43
$
43
Interest rates as of March 31, 2024 (%):
13.10
12.10
12.70
12.50
Base rate (%)
8.35
8.35
11.75
11.75
Margin (%)
4.75
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 March 31,
 
2024 and 2023, was $
4.0
 
million and
$
3.0
 
million, respectively. Prepaid facility fees amortized
 
included in interest expense during the three months ended March 31, 2024
and 2023, 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 March 31, 2024 and 2023.
(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 March
 
31,
2024:
Interest
 
expense
 
incurred
 
during
 
the
 
nine
 
months
 
ended
 
March
 
31,
 
2024
 
and
 
2023,
 
was
 
$
12.1
 
million
 
and
 
$
5.7
 
million,
respectively.
 
Prepaid facility
 
fees amortized
 
included
 
in interest
 
expense during
 
the nine
 
months ended
 
March 31,
 
2024 and
 
2023,
respectively,
 
were
 
$
0.3
 
million
 
and
 
$
0.4
 
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 $
1.1
 
million and $
0.5
 
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 nine months
 
ended March 31, 2024 and 2023.