21. INTEREST-BEARING BORROWINGS
 
  2019   2018  
  Non-current
portion
R’m		 Current
portion
R’m		   Non-current
portion
R’m		 Current
portion
R’m		  
Unsecured borrowings            
Bilateral term loans 2 237 531   4 582 500  
Syndicated term loans 5 485 –   5 244 593  
Bank loan 12 4   15 5  
Life Healthcare Multi-Issuer programme notes – 850   – 447  
Preference shares 500 –   1 725 975  
Secured borrowings            
Equipment instalment sale – 5   4 5  
Mortgage bonds 49 14   63 12  
Bank loans – 152   – 156  
Term loans 11 13   23 15  
Revolving credit facility – 705   – 88  
Finance leases 1 105 322   1 214 290  
Total borrowings – 30 September 9 399 2 596   12 870 3 086  

Terms and repayment schedule

  Interest rate Repayment  terms6 Date of
maturity/final
settlement		   Carrying
value
2019
R’m		   Carrying
value
2018
R’m		  
Bilateral term loans                
Southern Africa                
Term loan one 3-month JIBAR plus
1.65%1		 Eight equal quarterly
instalments of R50 million,
payable from
30 September 2018		 15 May 2020   150   350  
Term loan two 3-month JIBAR plus
1.70%		 Eight equal quarterly
instalments of R43.8 million,
payable from 30 September 2018		 15 May 2020   131   306  
Term loan three 3-month JIBAR plus
2.29%2		 Six equal semi-annual
instalments of R125 million,
payable from 30 June 2019		 17 Mar 2022   625   750  
Term loan four 3-month JIBAR plus
2.49%2		 Single instalment 28 Jun 2019   –   750  
Term loan five 3-month JIBAR plus
2.05%3		 Five equal semi-annual
instalments of R100 million,
payable from
30 September 2020		 29 Mar 2019   –   500  
Term loan six 3-month JIBAR plus
1.55%		 Five equal semi-annual
instalments of R200 million,
payable from
30 September 2021		 27 Sep 2023   1 000   1 000  
Term loan seven 3-month JIBAR plus
1.59%		 Five equal semi-annual
instalments of R100 million,
payable from
30 September 2021		 27 Sep 2023   500   500  
Polish                
Term loan one 3-month WIBOR
plus 2.04%		 Single instalment 31 Dec 2020   362   830  
Term loan two 3-month WIBOR
plus 2.05%		 Single instalment 23 Sep 2019   –   96  
Syndicated term loans                
United Kingdom                
Term loan A1 3-month LIBOR
plus 2.20%1		 Single instalment 22 Nov 2020   1 160   1 143  
Term loan A2 3-month LIBOR
plus 2.50%1		 Single instalment 22 Nov 2022   1 160   1 143  
Term loan B1 3-month EURIBOR
plus 2.00%1		 Single instalment 22 Nov 2020   1 133   1 120  
Term loan B2 3-month EURIBOR
plus 2.30%1		 Single instalment 22 Nov 2022   1 133   1 120  
Term loan C 3M LIBOR plus
2.35%1		 Single instalment 22 Nov 2022   899   702  
Credit facility 3M EURIBOR plus
1.75%4		 Single instalment 30 Nov 2018   –   609  
Bank loan 1.03% – 3.17% Monthly/quarterly
instalments of R0.9 million		 31 Apr 2031   16   20  
Life Healthcare Multi-Issuer programme notes                
Note one 3-month JIBAR plus
0.40%		 Single instalment 27 Nov 2018   –   300  
Note two 3-month JIBAR plus
0.70%		 Single instalment 27 Nov 2018   –   147  
Note three 3-month JIBAR plus
0.725%		 Single instalment 16 Oct 2019   250   –  
Note four 3-month JIBAR plus
0.735%		 Single instalment 28 Nov 2019   250   –  
Note five 3-month JIBAR plus
0.715%		 Single instalment 2 Mar 2020   400   –  
Preference shares                
Class A1 77% of 3-month
JIBAR plus 1.61%5		 Four equal six-monthly
instalments of R200 million,
payable from
31 March 2018		 28 Jun 2019   –   400  
Class B 77% of 3-month
JIBAR plus 1.61%5		 Four equal six-monthly
instalments of R125 million,
payable from
31 March 2018		 28 Jun 2019   –   250  
Class C 67% of prime1 Four equal six-monthly
instalments of
R162.5 million, payable
from 15 November 2018		 28 Jun 2019   –   650  
Class D1 72% of 3-month
JIBAR plus 1.80%		 Four equal six-monthly
instalments of R175 million,
payable from
30 March 2021		 28 Jun 2019   –   700  
Class D2 72% of 3-month
JIBAR plus 1.80%		 Four equal six-monthly
instalments of R175 million,
payable from
30 March 2021		 28 Jun 2019   –   700  
Class E 72% of 3-month
JIBAR plus 1.60%		 Single instalment 30 Mar 2022   500   –  
Unsecured borrowings         9 619   14 086  
Equipment instalment sale Botswana prime
less 0.25%		 60 equal monthly
instalments of R0.4 million		 31 Jul 2020   5   9  
Mortgage bonds 1-month Jibar plus
2.65%		 120 equal monthly
instalments of R1.6 mill		 30 Sep 2023   63   75  
Bank loans (trade receivable subject to factoring arrangement refer note 16) 1-month EURIBOR
+ 1.40% or
1-month LIBOR
+ 1.75%		 Payable as cash is
received from debtors		 Overarching
agreement ends
August 2020		   152   156  
Term loans in Polish operations 1-month/3-month
WIBOR plus
1.0% – 4.0%		 Monthly instalments of
R0.4 million		 14 Nov 2024   24   38  
Revolving credit facility                
Credit facility (EUR facility) 3-month EURIBOR
plus 1.10%		 Single instalment 11 Dec 2019   616   –  
Alliance Medical (GBP facility) LIBOR + 3.75% n/a Rolling credit agreement
of maximum 3 months Overarching agreement ends August 2020		   31   29  
Alliance Medical (EUR facility) EURIBOR + 3.75% n/a 58   59  
Finance leases                
Southern Africa (property) 8.5% – 18.0% Repayable in monthly instalments
over 1 to 15 years ending February 2034		 515   548  
Alliance Medical (property, equipment and other) 1.72% – 7.70% Repayable in either quarterly or monthly
instalments over 1 to 7 years ending
April 2026		 660   697  
Polish (property, equipment and other) 1-month/3-month
WIBOR plus
1.8% – 4.0%		 Repayable in monthly instalments
over 1 to 5 years ending February 2024		 252   259  
Secured borrowings         2 376   1 870  
Total borrowings         11 995   15 956  

  Carrying
value
2019
R’m		   Carrying
value
2018
R’m		  
The interest-bearing borrowings carrying amount is denominated in the following currencies:        
South African rand 4 194   7 793  
Botswana pula 145   142  
Pound sterling 3 972   3 729  
European euro 3 046   3 069  
Polish zloty 638   1 223  
  11 995   15 956  

The lenders have the right to change the interest rate margin on the term loans in the following conditions:
1 – If the net debt to normalised EBITDA ratio is higher than 3.00:1, then the interest rate margin shall increase by 0.25%.
2 – If the net debt to normalised EBITDA ratio is at or less than 1.75:1, then the interest rate margin shall be 1.84% for term loan three and 2.04% for term loan four.
   – If the net debt to normalised EBITDA ratio is higher than 1.75:1 and less than or equal to 2.25:1, then the interest rate margin shall be 1.99% for term loan three and 2.19% for term loan four.
   – If the net debt to normalised EBITDA ratio is higher than 2.25:1 and less than or equal to 2.75:1, then the interest rate margin shall be 2.14% for term loan three and 2.34% for term loan four.
   – If the net debt to normalised EBITDA ratio is higher than 2.75:1, then the interest rate margin shall be 2.29% for term loan three and 2.49% for term loan four.
3 – If the net debt to normalised EBITDA ratio is higher than 3.00:1, then the interest rate margin shall be 2.20%.
4 – The margin for each facility increases after six, nine and 12 months.
5 – If the net debt to normalised EBITDA ratio is higher than 1.75:1 and less than 2.25:1, then the applicable interest rate margin shall increase by 0.25% for the next two interest periods; or
   – If the net debt to normalised EBITDA ratio is at or higher than 2.25:1, then the applicable interest rate margin shall increase by 0.5% for the next two interest periods.
6 – The final capital repayment date is stipulated in the funding agreement and may differ slightly from the instalment dates.

  Bank 
loans 
2019 
R’m 		 Preference 
shares 
2019 
R’m 		 Finance 
leases 
2019 
R’m 		   Bank 
loans 
2018 
R’m 		 Finance 
leases 
2018 
R’m 		 Finance 
leases 
2018 
R’m 		  
Reconciliation of opening balance to closing balance                
Balance at 1 October  11 752  2 700  1 504     8 497  3 950  1 640    
Cash flow movements                         
Proceeds from interest-bearing borrowings  5 285  500  211     8 306  –  131    
Repayment of interest-bearing borrowings  (7 048) (2 700) (304)    (5 191) (1 250) (343)   
Interest paid  (576) (143) (115)    (514) (224) –    
Debt raising fees capitalised  –  –  –     (76) –  –    
Non-cash items                         
Interest accrued  576  143  115     514  224  136    
Recognition/(derecognition) of finance lease liabilities  –  –  3     –  –  (94)   
Arising on acquisition of subsidiaries  –  –  4     –  –  3    
Amortisation of debt raising fees capitalised  20  –  –     30  –  –    
Effect of foreign currency movement  59  –  9     186  –  31    
Balance at 30 September  10 068  500  1 427     11 752  2 700  1 504    

  Carrying amount   Fair value  
  2019
R’m		   2018
R’m		   2019
R’m		   2018
R’m		  
Secured borrowings                
Finance leases 1 427   1 504   1 437   1 529  

  Receivables   Property, plant
and equipment		  
  2019
R’m		   2018
R’m		   2019
R’m		   2018
R’m		  
Carrying value of assets held as security for borrowings                
Equipment instalment sale –   –   12   13  
Mortgage bonds –   –   115   124  
Bank loans 359   340   –   –  
Term loans in Polish operations –   –   102   100  
Revolving credit facility (Alliance Medical – secured against gross assets) –   –   1 727   1 584  
Finance leases –   –   1 598   1 583  
Total 359   340   3 554   3 404  

  Future minimum lease
payments		   Interest   Present value of
future finance
lease payments		  
  2019
R’m		   2018
R’m		   2019
R’m		   2018
R’m		   2019
R’m		   2018
R’m		  
Finance lease liabilities                        
Within one year 423   400   101   110   322   290  
Between one and five year 1 079   1 227   247   304   832   923  
Later than five years 419   465   146   174   273   291  
Total 1 921   2 092   494   588   1 427   1 504  

  Total
2019
R’m		 Available
2019
R’m		   Total
2018
R’m		  
Borrowing facilities          
The Group has the following borrowing facilities:          
Southern Africa          
   Available and uncommitted revolving credit facility 2 000 2 000   1 500  
   Committed working capital and guarantee facility1 1 500 633   1 250  
   Uncommitted primary lending facility 500 500   500  
International          
   Available and committed GBP revolving credit facility 1 868 964   1 846  
   Available and committed EUR credit facility 829 213   2 714  
   Available and committed revolving credit facility (GBP and EUR) 93 4   92  
   Committed working capital facility (zloty) 21 21   14  
   Committed leasing facility (GBP) 560 46   554  
   Factoring facility (GBP and EUR) 284 132   281  
  7 655 4 513   8 751  

1 Fluctuates seasonally.