Notes to the financial statements | Note 31

31. INTEREST-BEARING LOANS
 
  Group
2025
Rm		 2024
Rm
Interest-bearing loan    
Current portion 500 500
Non-current portion – –
  500 500
Movements in interest-bearing loans for the year:    
Opening balance 500 500
Drawings on facilities 1 000 –
Finance cost charges 36 41
Payments (1 036) (41)
Closing balance 500 500

An interest-bearing loan of R500 million, bearing interest at three-month JIBAR plus 1,3%, was repayable in full in November 2024. From June 2022, an interest rate swap was entered into to fix the variable interest rate at 8,15% on the loan amount of R500 million. The loan was early settled in September 2024 using general banking facilities available to the Group and the interest rate swap cancelled upon settlement of the loan. The general banking facilities are on demand, subject to annual renewal. The interest rates on the new facilities range from 8,00% to 9,05%.

All debt covenants have been fulfilled. Covenants include:

  • net interest-bearing debt divided by EBITDA (not greater than 2:1); and
  • EBITDA dividend by finance charges (not less than 4:1).