20. INTEREST-BEARING BORROWINGS
 
  2020   2019  
  Non-current
portion
R’m		   Current
portion
R’m		   Non-current
portion
R’m		   Current
portion
R’m		  
Unsecured borrowings
Bilateral term loans   1 325   957   2 237   531  
Syndicated term loans   7 056   –   5 485   –  
Bank loan   15   4   12   4  
Life Healthcare Multi-Issuer programme notes   –   598   –   850  
Preference shares   500   –   500   –  
Secured borrowings
Equipment instalment sale   –   –   –   5  
Mortgage bonds   34   15   49   14  
Bank loans   –   65   –   152  
Term loans   1   2   11   13  
Revolving credit facility   738   –   –   705  
Lease liabilities (2019: finance leases)   2 365   539   1 105   322  
Total borrowings – 30 September   12 034   2 180   9 399   2 596  

Terms and repayment schedule

Interest rate at 30 September Repayment terms4 Date of
maturity/final
settlement		   Carrying
value
2020
R’m		   Carrying
value
2019
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  
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  
Term loan three 3-month JIBAR plus 2.14%2 Six equal semi-annual instalments of R125 million, payable from 30 June 2019 17 Mar 2022   375   625  
Term loan four 3-month JIBAR plus 1.55%3 Five equal semi-annual instalments of R200 million, payable from 30 September 2021 27 Sep 2023   1 000   1 000  
Term loan five 3-month JIBAR plus 1.59% Five equal semi-annual instalments of R100 million, payable from 30 September 2021 27 Sep 2023   500   500  
 
Interest rate at
30 September		 Repayment terms4 Date of
maturity/final
settlement		   Carrying
value
2020
R’m		   Carrying
value
2019
R’m		  
Polish
Term loan one 3-month WIBOR plus 2.04% Single instalment 18 Dec 2020   407   362  
Syndicated term loans
United Kingdom
Term loan A1 3-month LIBOR plus 1.80%1 (2019: 2.20%) Single instalment 31 Mar 2023
(2019: 22 Nov 2020)		   1 953   1 160  
Term loan A2 3-month LIBOR plus 2.00 %1 (2019: 2.50%) Single instalment 31 Mar 2025
(2019: 22 Nov 2022)		   1 953   1 160  
Term loan B1 3-month EURIBOR plus 1.70%1 (2019: 2.00%) Single instalment 31 Mar 2023
(2019: 22 Nov 2020)		   1 358   1 133  
Term loan B2 3-month EURIBOR plus 1.90%1 (2019: 2.30%) Single instalment 31 Mar 2025
(2019: 22 Nov 2022)		   1 358   1 133  
Term loan C 3-month LIBOR plus 1.70%1 (2019: 2.35%) Single instalment 31 Mar 2025
(2019: 22 Nov 2022)		   434   899  
Bank loan 1.00% – 3.17% Monthly/quarterly instalments 31 April 2031   19   16  
Life Healthcare
Multi-Issuer programme notes
Note one 3-month JIBAR plus 0.725% Single instalment 16 Oct 2019   –   250  
Note two 3-month JIBAR plus 0.735% Single instalment 28 Nov 2019   –   200  
Note three 3-month JIBAR plus 0.715% Single instalment 2 Mar 2020   –   400  
Note four 3-month JIBAR plus 0.750% Single instalment 15 Oct 2020   243   –  
Note five 3-month JIBAR plus 1.200% Single instalment 17 Nov 2020   80   –  
Note six 3-month JIBAR plus 1.700% Single instalment 8 Jun 2021   275   –  
Preference shares
Class E 72% of 3-month JIBAR plus 1.60% Single instalment 30 Mar 2022   500   500  
Unsecured borrowings         10 455   9 619  
 
Interest rate at
30 September		 Repayment terms4 Date of maturity/final settlement     Carrying
value
2020
R’m		   Carrying
value
2019
R'm		  
Equipment instalment sale Botswana prime less 0.25% 60 equal monthly instalments of R0.4 million 31 Jul 2020     –   5  
Mortgage bonds 1-month Jibar plus 2.65% 120 equal monthly instalments of R1.5 million 30 Sep 2023     49   63  
Bank loans (trade receivable subject to factoring arrangement refer note 16) 1-month Euribor + 1.30% (2019: 1.40%) or 1-month LIBOR + 1.75% Payable as cash is received from debtors Overarching agreement ends August 2021     65   152  
Term loans in Polish operations 1-month WIBOR plus 1.0% Monthly instalments of R0.1 million 24 Sep 2022     3   24  
Revolving credit facilities
Credit facility (EUR facility) 3-month EURIBOR plus 1.35% Single instalment 10 Dec 2021     738   616  
Alliance Medical
(GBP facility)		 LIBOR + 3.75% n/a Rolling credit agreement of maximum
3 months. Overarching agreement ends August 2021		     –   31  
Alliance Medical
(EUR facility)		 EURIBOR + 3.75% n/a   –   58
Lease liabilities (2019: finance leases)
Southern Africa (property, equipment and other) 7.0%-18.0% Repayable in monthly instalments over 1 to 20 years ending Oct 2039.   881   515  
Alliance Medical (property, equipment and other) 0.0%-6.67% Repayable in either quarterly or monthly instalments over 1 to 22 years ending Sep 2042.   1 495   660  
Polish (property, equipment and other) 3-month WIBOR plus 3.76% or 3.77% Repayable in monthly instalments over 1 to 18 years ending June 2038. 528       252  
Secured borrowings   3 759   2 376  
Total borrowings   14 214   11 995  

 

Carrying
value
2020
R’m		   Carrying
value
2019
R’m		  
The interest-bearing borrowings carrying amount is denominated in the following currencies:
South African rand 3 723   4 194  
Botswana pula 180   145  
Pound sterling 5 268   3 972  
European euro 4 105   3 046  
Polish zloty 938   638  
14 214   11 995  
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.
  – 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.
  – 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.
  – 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.
3 – If the net debt to normalised EBITDA ratio is at or less than 2.50:1, then the interest rate margin shall be 1.55% for term loan four.
  – If the net debt to normalised EBITDA ratio is higher than 2.50:1 and less than or equal to 3.00:1, then the interest rate margin shall be 2.05% for term loan four.
  – If the net debt to normalised EBITDA ratio is higher than 3.00:1 and less than or equal to 3.50:1, then the interest rate margin shall be 2.30% for term loan four.
  – If the net debt to normalised EBITDA ratio is higher than 3.50:1, then the interest rate margin shall be 2.55% for term loan four.
4 The final capital repayment date is stipulated in the funding agreement and may differ slightly from the instalment dates.

 

Bank
loans
2020
R’m		 Preference
shares
2020
R’m		 Lease
liabilities
2020
R’m		   Bank
loans
2019
R’m		 Preference
shares
2019
R’m		 Finance
leases
2019
R’m		  
Reconciliation of opening balance to closing balance
Balance at 1 October 10 068 500 1 427   11 752 2 700 1 504  
Cash flow movements
Proceeds from interest-bearing borrowings 12 505 – 261   5 285 500 211  
Repayment of interest-bearing borrowings (12 952) – (573)   (7 048) (2 700) (304)  
Interest paid (427) (29) (159)   (576) (143) (115)  
Debt raising fees capitalised (43) – –   – – –  
Non-cash items
Interest accrued 427 29 159   576 143 115  
Recognised on 1 October 2019 as a result of adopting IFRS 16 – – 1 292   – – –  
Additional lease liabilities recognised – – 355   – – 3  
Derecognition of lease liability – – (173)   – – –  
Arising on acquisition of subsidiaries – – –   – – 4  
Amortisation of debt raising fees capitalised 45 – –   20 – –  
Effect of foreign currency movement 1 187 – 315   59 – 9  
Balance at 30 September 10 810 500 2 904   10 068 500 1 427  

 

Receivables   Property, plant and equipment  
2020
R’m		   2019
R’m		   2020
R’m		   2019
R’m		  
Carrying value of assets held as security for borrowings
Equipment instalment sale –   –   –   12  
Mortgage bonds –   –   106   115  
Bank loans 311   359   –   –  
Term loans in Polish operations –   –   25   102  
Revolving credit facility (Alliance Medical - secured against gross assets) –   –   2 125   1 727  
Lease liabilities (2019: Finance leases) –   –   3 077   1 598  
Total 311   359   5 333   3 554  

 

Future minimum lease
payments		 Interest Present value of future
finance lease payments
2020
R’m		   2019
R’m		   2020
R’m		   2019
R’m		   2020
R’m		   2019
R’m		  
Finance lease liabilities
Within one year n/a¹   423   n/a¹   101   n/a¹   322  
Between one and five years     1 079       247       832  
Later than five years     419       146       273  
Total –   1 921   –   494   –   1 427  

1  Disclosed as part of risk management – refer note 31.

Borrowing facilities

Total
2020
R’m		 Available
2020
R’m		   Total
2019
R’m		 Available
2019
R’m
The Group has the following borrowing facilities:
Southern Africa
   Uncommitted revolving credit facility – –   2 000 2 000
   Committed general banking facilities* 4 000 2 319   1 500 633
   Committed trade loan facility 650 650   – –
   Uncommitted general banking facilities 1 250 750   500 500
International
   Committed GBP revolving credit facility 2 290 1 853   1 961 968
   Committed EUR revolving credit facility 993 255   829 213
   Committed working capital facility (zloty) 44 44   21 21
   Committed leasing facility (GBP) 654 143   560 46
   Factoring facility (GBP and EUR) 333 268   284 132
10 214 6 282   7 655 4 513

* Fluctuates seasonally.