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Borrowings
 3 Months Ended
Sep. 30, 2025
Borrowings [Abstract]  
Borrowings
Movement in short-term credit facilities
Summarized below are the
Company’s short-term facilities as of
September 30, 2025, and
the movement in
the Company’s short-
term facilities from as of June 30, 2025 to as of September 30, 2025:
9.
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, 2025, for additional information regarding
its borrowings.
Reference rate reform
After the
transition
away from
certain
interbank
offered
rates in
foreign
jurisdictions
(“IBOR reform”),
the reforms
to South
Africa’s
reference interest
rate are now
accelerating rapidly.
The Johannesburg
Interbank Average
Rate (“JIBAR”)
will be replaced
by the new South African Overnight Index Average (“ZARONIA”). Certain of the Company’s
borrowings reference JIBAR as a base
interest rate. ZARONIA
reflects the
interest rate at
which rand-denominated
overnight wholesale
funds are
obtained by commercial
banks. There
is uncertainty
surrounding the
timing and
manner in
which the
transition would
occur and
how this
would affect
our
borrowings. The
Company is in
regular contact
with its lenders
and will update
existing borrowing
agreements to the
new base
rate
when ZARONIA is adopted by the financial industry and lenders as the new
reference rate.
South Africa
The JIBAR,
an average
of 3
month negotiable
certificates of
deposit (“NCD”)
rates, on
September 30,
2025, was
7.00
%. The
prime rate, the benchmark rate at which private sector banks lend to the public
in South Africa, on September 30, 2025, was
10.50
%.
(1) Represents the effects of the fluctuations between the
ZAR and the U.S. dollar.
RMB
RMB
Nedbank
GBF
Other
Facilities
Total
Short-term facilities available as of September 30, 2025
$
40,584
$
5,831
$
9,065
$
55,480
Overdraft
40,584
-
-
40,584
Indirect and derivative facilities
-
5,831
9,065
14,896
Movement in utilized overdraft facilities:
No restrictions as to use
24,469
-
-
24,469
Balance as of June 30, 2025
24,469
-
-
24,469
Utilized
27,974
-
-
27,974
Repaid
(40,661)
-
-
(40,661)
Foreign currency adjustment
(1)
706
-
-
706
Balance as of September 30, 2025
12,488
-
-
12,488
No restrictions as to use
$
12,488
$
-
$
-
$
12,488
Interest rate as of September 30, 2025 (%)
(2)
10.00
N/A
N/A
Interest rate as of June 30, 2025 (%)
(2)
10.25
N/A
N/A
Movement in utilized indirect and derivative facilities:
Balance as of June 30, 2025
$
-
$
1,864
$
119
$
1,983
Foreign currency adjustment
(1)
-
53
3
56
Balance as of September 30, 2025
$
-
$
1,917
$
122
$
2,039
Facilities
Lesaka A
Lesaka B
Asset
backed
CCC
Total
Included in current
$
-
$
8,448
$
3,508
$
-
$
11,956
Included in long-term
120,375
47,873
3,671
16,894
188,813
Opening balance as of June 30, 2025
120,375
56,321
7,179
16,894
200,769
Facilities utilized
-
-
1,791
972
2,763
Facilities repaid
-
-
(1,148)
-
(1,148)
Non-refundable fees paid
-
-
-
(33)
(33)
Non-refundable fees amortized
75
-
2
3
80
Foreign currency adjustment
(1)
3,384
1,582
218
482
5,666
Closing balance as of September 30, 2025
123,834
57,903
8,042
18,318
208,097
Included in current
-
8,685
3,896
-
12,581
Included in long-term
123,834
49,218
4,146
18,318
195,516
Unamortized fees
(990)
-
-
(31)
(1,021)
Due within 2 years
-
11,581
2,521
-
14,102
Due within 3 years
-
17,371
1,313
-
18,684
Due within 4 years
124,824
20,266
312
18,349
163,751
Due within 5 years
$
-
$
-
$
-
$
-
$
-
Interest rates as of September 30, 2025 (%):
10.25
10.15
11.25
11.45
Base rate (%)
7.00
7.00
10.50
10.50
Margin (%)
3.25
3.15
0.75
0.95
(2)
(3)
(4)
(5)
Interest rates as of June 30, 2025 (%):
10.54
10.44
11.50
11.70
Base rate (%)
7.29
7.29
10.75
10.75
Margin (%)
3.25
3.15
0.75
0.95
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
A and Facility
B is based
on the JIBAR
in effect
from time
to time
plus an
initial margin
of
3.25
% per
annum until
June 30,
2025. From
July 1,
2025, the
margin on
Facility A
is determined
with reference
to the
Net Debt
to EBITDA
Ratio, and the
margin will be either
(i)
3.25
%, if the Net
Debt to EBITDA Ratio
is greater than or
equal to 2.5 times;
or (ii)
2.5
%, if
the Net Debt to EBITDA Ratio is less than 2.5 times.
(3) Interest on
Facility B is calculated
based on JIBAR from
time to time plus
an initial margin
of
3.15
% per annum
until June
30, 2025. From July 1, 2025, the margin on Facility B is determined with reference to the Net Debt to EBITDA Ratio, and the margin
will be either (i)
3.15
%, if the Net
Debt to EBITDA Ratio is greater than
or equal to 2.5 times;
or (ii)
2.4
%, if the Net Debt
to EBITDA
Ratio is less than 2.5 times.
(4) Interest is charged at prime plus
0.75
% per annum on the utilized balance.
(5) Interest is charged at prime plus
0.95
% 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, 2025 and
2024, was $
3.8
million
and $
4.2
million, respectively.
Prepaid facility fees amortized
included in interest expense
during the three months
ended September
30, 2025 and 2024, respectively,
were $
0.1
million and $
0.1
million, respectively.
Interest expense incurred under the Company’s
South African long-term borrowings to fund its Consumer lending book (for the
three months ended September
30, 2025) and interest incurred
under the Company’s
CCC and K2020 facilities relates to
borrowings
utilized to fund a portion of the Company’s merchant finance loans receivable were $
1.6
million and $
0.4
million, respectively, and is
included in the caption cost of
goods sold, IT processing, servicing and support
on the condensed consolidated statement of operations
f
or the three months ended September 30, 2025 and 2024.
(2) RMB GBF interest is set at prime less
0.50
%.
Interest expense incurred under
the Company’s South African short-term borrowings
and included in
the caption interest
expense
on the condensed consolidated statement of operations during the three months ended September 30, 2025 and
2024, was $
0.8
million
and $
0.6
million, respectively.
9.
Borrowings (continued)
Movement in long-term borrowings
Summarized below
is the
movement in
the Company’s
long-term borrowing
from as
of June
30, 2025
to as
of September
30,
2025: