 |
42.1 |
Movement in borrowings |
|
|
| |
|
Opening balance |
760 |
2 138 |
| |
|
Movement during year:
|
|
|
| |
|
Arising from subsidiaries
and businesses acquired |
—
|
1 |
| |
|
Loans raised |
400 |
113 |
| |
|
Loans repaid |
(466) |
(1 479) |
| |
|
Vendor loan notes repaid |
(2) |
(7) |
| |
|
Fair value adjustment |
—
|
18 |
| |
|
Foreign subsidiaries
exchange differences |
(14) |
(24) |
| |
|
Closing balance |
678 |
760 |
| |
42.2 |
Analysis of borrowings |
|
|
| |
|
Secured interest
bearing borrowings |
|
|
| |
|
Loan from UK financial
institution bearing interest at 6 month
LIBOR +1%. The loan is denominated in the
currencies Sterling, US dollar and Swiss
francs. The loan is repayable in two instalments
of R43m (£4m) each in May and November
2006 and a final payment of R108m (£10m)
in May 2007 |
194 |
255 |
| |
|
Short-term Sterling facility
from UK financial institution bearing interest
at LIBOR +1% |
70 |
110 |
| |
|
Loan from SA financial
institution bearing interest at prime less
1,5%. The loan is repayable in nine bi-annual
instalments of R25m each, up to August 2010 |
225 |
—
|
| |
|
Short-term facility from
SA financial institution bearing interest
at prime less 1,8%. The facility is repayable
on 90 days notice from either the lender
or borrower. |
100 |
—
|
| |
|
Sterling denominated vendor
loan notes arising from acquisitions, secured
by matching cash deposits, bearing interest
at 4,18% |
5 |
7 |
| |
|
Loans from a local financial
institution, secured by shares in group
companies bearing interest at prime less
1%. The loans were repaid in December 2005. |
—
|
368 |
| |
|
Loan from a Thai financial
institution bearing interest at 1,9% repaid
in July 2005. |
—
|
3 |
| |
|
Unsecured interest
bearing borrowings |
|
|
| |
|
Loan from SA financial
institution bearing interest at prime less
2,5%, with no fixed terms of repayment |
75 |
—
|
| |
|
Loan from SA financial
institutions bearing interest at prime less
2%, with no fixed terms of repayment |
7 |
10 |
| |
|
Loan from Kenyan financial
institution bearing interest at prime, repaid
in November 2005 |
—
|
4 |
| |
|
Total interest
bearing borrowings |
676 |
757 |
| |
|
Unsecured interest
free borrowings |
|
|
| |
|
Non-interest bearing
loans with no fixed terms of repayment |
2 |
3 |
| |
|
Total borrowings |
678 |
760 |
| |
42.3 |
Maturity analysis
of borrowings |
|
|
| |
|
Due within one year |
310 |
358 |
| |
|
Due between two and five
years |
284 |
390 |
| |
|
Due after five years |
84 |
12 |
| |
|
|
678 |
760 |
| |
42.4 |
Bank covenants
and security |
|
|
| |
|
Loan and short-term
facilities from SA financial institution |
|
|
| |
|
The debt covenants are
summarised as follows: |
|
|
| |
|
| • |
Pre-distribution
debt cover ratio for the Alexander
Forbes South Africa Holdings (Pty)
Limited group (“AFSA”)
to be maintained shall not be less
than two to one. |
| • |
Net debt to earnings
before interest, tax, depreciation
and amortisation (EBITDA) ratio for
the AFSA group to be maintained shall
not exceed 1.5. |
| • |
Consolidated revenue
of AFSA group shall not decline by
more than 20% relative to the same
revenue measured at 31 March 2004. |
| • |
Weighted average
capital adequacy requirement of the
two licensed life insurance companies
in the AFSA group shall exceed 1,8. |
| • |
Net outflow
of assets from Investment Solutions
in South Africa shall not be more
than 20% of its assets under investment
multi-management at the end of the
immediately preceding financial
year. |
|
|
|
| |
|
All significant
operating entities within the South Africa
group have provided a guarantee to the lender
as security for the loan and facility. Where
guarantees are not permitted by legislation,
a pledge of shares has been provided. |
|
|
| |
|
|
|
|
| |
|
Loan from UK financial
institution |
|
|
| |
|
The debt covenants are
summarised as follows: |
|
|
| |
|
| • |
Interest cover
ratio to be maintained shall not be
less than 2,5 to one. |
| • |
Cash flow
to total interest and loan repayments
shall not be less than one to one. |
| • |
Net worth of Alexander
Forbes International Limited shall
not be less than £80 million
(R864 million at closing exchange
rate). |
|
|
|
