Borrowings

9 Months Ended

Mar. 31, 2021

Borrowings [Abstract]

Borrowings

9.Borrowings

Refer to Note 13 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2020, for additional information regarding its borrowings.

South Africa

Nedbank facility, comprising short-term facilities

On November 2, 2020, the Company amended its short-term South African credit facility with Nedbank Limited to increase the indirect and derivative facilities component of the facility from ZAR 150.0 million to ZAR 159.0 million. As of March 31, 2021, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited was ZAR 459.0 million ($31.0 million). The credit facility comprises an overdraft facility of (i) up to ZAR 300.0 million ($20.2 million), which is further split into (a) a ZAR 250.0 million ($16.9 million) overdraft facility which may only be used to fund mobile ATMs and (b) a ZAR 50.0 million ($3.4 million) general banking facility and (ii) indirect and derivative facilities of up to ZAR 159.0 million ($10.7 million), which include guarantees, letters of credit and forward exchange contracts.

The Company has entered into cession and pledge agreements with Nedbank related to certain of its Nedbank credit facilities (the general banking facility and a portion of the indirect facility) and the Company has ceded and pledged certain bank accounts to Nedbank. The funds included in these bank accounts are restricted as they may not be withdrawn without the express permission of Nedbank. These funds, of ZAR 113.0 million ($7.6 million translated at exchange rates applicable as of March 31, 2021), are included within the caption restricted cash related to ATM funding and credit facilities to the Company’s unaudited condensed consolidated balance sheet as of March 31, 2021.

Movement in short-term credit facilities

Summarized below are the Company’s short-term facilities as of March 31, 2021, and the movement in the Company’s short-term facilities from as of June 30, 2020 to as of March 31, 2021, as well as the respective interest rates applied to the borrowings as of March 31, 2021:

						South Africa				Total
					RMB		Nedbank
Short-term facilities available as of March 31, 2021					$	80,929	$	30,958	$	111,887
	Overdraft					-		3,372		3,372
	Overdraft restricted as to use for ATM funding only					80,929		16,860		97,789
	Indirect and derivative facilities					-		10,726		10,726
Interest rate (%), based on South African prime rate						7.00
Interest rate (%), based on South African prime rate less 1.15%								5.85
Movement in utilized overdraft facilities:
	Balance as of June 30, 2020					14,756		58		14,814
		Utilized				244,234		17,525		261,759
		Repaid				(251,902)		(16,401)		(268,303)
		Foreign currency adjustment(1)				3,431		(306)		3,125
			Balance as of March 31, 2021			10,519		876		11,395
				Restricted as to use for ATM funding only		10,519		876		11,395
Movement in utilized indirect and derivative
facilities:
	Balance as of June 30, 2020(2)					-		5,398		5,398
		Utilized				-		3,909		3,909
		Foreign currency adjustment(1)				-		1,251		1,251
			Balance as of March 31, 2021(2)		$	-	$	10,558	$	10,558

(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar.(2) As of March 31, 2021 and June 30, 2020, the Company had utilized approximately ZAR 156.6 million ($10.6 million) and ZAR 93.6 million ($5.4 million), respectively, of its indirect and derivative facilities of ZAR 159.0 million (June 30, 2020: ZAR 150 million) to enable the bank to issue guarantees, letters of credit and forward exchange contracts, in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 20).