v3.25.4
Borrowings
 6 Months Ended
Dec. 31, 2025
Borrowings [Abstract]  
Borrowings
Movement in short-term credit facilities
Summarized below are the Company’s short-term facilities as
of December 31, 2025, and
the movement in the Company’s short-
term facilities from as of June 30, 2025 to as of December 31, 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
December 31,
2025, was
6.75
%. The
prime rate, the benchmark rate at which private sector banks lend to the public
in South Africa, on December 31, 2025, was
10.25
%.
(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 December 31, 2025
$
42,267
$
6,073
$
9,441
$
57,781
Overdraft
42,267
-
-
42,267
Indirect and derivative facilities
-
6,073
9,441
15,514
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
48,509
-
-
48,509
Repaid
(53,101)
-
-
(53,101)
Foreign currency adjustment
(1)
1,456
-
-
1,456
Balance as of December 31, 2025
21,333
-
-
21,333
No restrictions as to use
$
21,333
$
-
$
-
$
21,333
Interest rate as of December 31, 2025 (%)
(2)
9.75
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
Guarantees cancelled
-
(1,611)
-
(1,611)
Utilized
-
1,536
-
1,536
Foreign currency adjustment
(1)
-
128
8
136
Balance as of December 31, 2025
$
-
$
1,917
$
127
$
2,044
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
-
-
3,057
972
4,029
Facilities repaid
-
-
(2,385)
-
(2,385)
Non-refundable fees paid
-
-
-
(33)
(33)
Non-refundable fees amortized
152
-
5
12
169
Foreign currency adjustment
(1)
8,520
3,983
533
1,242
14,278
Closing balance as of December 31, 2025
129,047
60,304
8,389
19,087
216,827
Included in current
-
9,046
3,979
-
13,025
Included in long-term
129,047
51,258
4,410
19,087
203,802
Unamortized fees
(951)
-
-
(23)
(974)
Due within 2 years
-
12,061
2,518
-
14,579
Due within 3 years
-
18,091
1,530
19,110
38,731
Due within 4 years
129,998
21,106
362
-
151,466
Due within 5 years
$
-
$
-
$
-
$
-
$
-
Interest rates as of December 31, 2025 (%):
10.00
9.90
11.00
10.15
Base rate (%)
6.75
6.75
10.25
10.25
Margin (%)
3.25
3.15
0.75
(0.10)
(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)
(6)
(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 less 0.10% per annum on
the utilized balance.
(6) 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 December 31, 2025 and 2024, was $
3.7
million
and $
4.2
million, respectively.
Prepaid facility fees
amortized included
in interest expense
during the three
months ended December
31, 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 and included in the
caption interest expense
on the condensed
consolidated statement of
operations during the
six months ended
December 31, 2025
and 2024, was
$
7.5
million
and $
4.2
million, respectively. Prepaid facility fees amortized included in interest expense during the six months ended December
31,
2025 and 2024, respectively,
were $
0.2
million and $
0.1
million, respectively.
9.
Borrowings (continued)
Movement in long-term borrowings (continued)
Interest expense incurred under the Company’s
South African long-term borrowings to fund its Consumer lending book (for the
three months ended
December 31, 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 $
1.8
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
for the three months ended December 31, 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 December 31, 2025 and 2024, was $
0.8
million
and $
0.6
million, respectively.
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
six months ended
December 31, 2025
and 2024, was $
1.3
million and $
2.4
million, respectively.
The
Company
cancelled
Adumo’s
overdraft
arrangements
on
October
1,
2024,
and
settled
Adumo’s
outstanding
overdraft
balance of ZAR
20.0
million ($
1.1
million) on the
same day.
The repayment is
included in the
caption repayment
of bank overdraft
included on the Company’s unaudited condensed consolidated statements of cash flows for the three and six months ended December
3
1, 2024.
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 December
31,
2025:
Interest expense incurred under the Company’s
South African long-term borrowings to fund its Consumer lending book (for the
six months
ended December
31, 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 $
3.3
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
for the six months ended December 31, 2025 and 2024.
The Company
cancelled Adumo’s
long-term
borrowings
arrangements on
October 1,
2024, and
settled Adumo’s
outstanding
balances
of ZAR
126.7
million
($
7.2
million) on
the same
day.
The repayment
is included
in the
caption
repayment of
long-term
borrowings included on the Company’s unaudited condensed consolidated statements
of cash flows for
the three and six
months ended
December 31, 2024.