Borrowings

6 Months Ended

Dec. 31, 2024

Borrowings [Abstract]

Borrowings

Movement in short-term credit facilities (continued)

Summarized below are the Company’s short-term facilities as of December 31, 2024, and the movement in the Company’s short-

term facilities from as of June 30, 2024 to as of December 31, 2024:

9. Borrowings

Refer to Note 12 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for

the year ended June 30, 2024, for additional information regarding its borrowings.

Reference rate reform

After the transition away from certain interbank offered rates in foreign jurisdictions (“IBOR reform ”), the reforms to South

Africa’s reference interest rate are now accelerating rapidly. The Johannesburg Interbank Average Rate (“JIBAR”) will be replaced

by the new South African Overnight Index Average (“ZARONIA”). Certain of the Company’s borrowings reference JIBAR as a base

interest rate. ZARONIA reflects the interest rate at which rand-denominated overnight wholesale funds are obtained by commercial

banks. There is uncertainty surrounding the timing and manner in which the transition would occur and how this would affect our

borrowings. The Company is engag ing with its borrowers to negotiate changes to its existing borrowing agreements or to introduce

language to cater for the transition to ZARONIA in its future borrowing agreements.

South Africa

The Company is currently renegotiating its borrowing facilities and expects the process to be concluded before March 31, 2025.

The amounts below have been translated at exchange rates applicable as of the dates specified. The JIBAR, an average of 3 month

negotiable certificates of deposit (“NCD”) rates, on December 31, 2024, was

7.75

%. The prime rate, the benchmark rate at which

private sector banks lend to the public in South Africa, on December 31, 2024, was

11.25

%, and reduced to

11.00

% on January 31,

2025, following a 0.25% reduction in the South African repo rate, the rate at which private sector banks borrow funds from the South

African Reserve Bank.

RMB Facilities, as amended, comprising a short-term facility (Facility E) and long-term borrowings

Long-term borrowings - Facility G and Facility H

As of December 31, 2024, Lesaka SA’s facilities included (i) Facility G of ZAR

627.0

 million ($

33.3

 million); (ii) Facility H of

ZAR

390.1

 million ($

20.8

 million) (both fully utilized); and (iii) the Facility G revolver of ZAR

200.0

 million ($

10.6

 million) (of

which ZAR

199

 million ($

10.6

 million) has been utilized). The interest rate on these facilities as of December 31, 2024, was JIBAR

plus

4.75

%.

Available short-term facility - Facility E

The Company cancelled its Facility E facility agreement in November 2024. The overdraft facility could only be used to fund

ATMs and therefore the overdraft utilized and converted to cash to fund the Company’s ATMs was considered restricted cash. The

interest rate on this facility was equal to the prime rate. 

RMB Bridge Facilities, comprising a short-term facility obtained in October 2024 and amended in December 2024

On September 30, 2024, Lesaka SA entered into a Facility Letter (the “F2024 Facility Letter”) with RMB to provided Lesaka

SA a ZAR

665.0

 million funding facility (the “Facility”). As of December 31, 2024, the Company had utilized all of the ZAR

665

million bridge facility. The Facility has been used by Lesaka SA to (i) settle an amount of ZAR

232.2

 due under the Adumo transaction

(refer to Note 2); (ii) pay Crossfin Holdings (RF) Proprietary Limited (“Crossfin Holdings”) ZAR

207.2

 million under a share purchase

agreement concluded between Lesaka SA and Crossfin Holdings (refer to Note 11); (iii) pay an amount of ZAR

147.5

 million, which

includes interest, notified by Investec Bank Limited to Adumo and Lesaka SA as a result of the transaction described in Note 2, and

(iv) pay an origination fee of ZAR

7.6

 million to RMB. The Facility also provides Lesaka with ZAR

70.0

 million for transaction -

related expenses.

On December 10, 2024, Lesaka SA and RMB entered into a First Addendum to the Facility Letter (the “F2024 Addendum

Letter”). The F2024 Addendum Letter provides Lesaka SA with an additional ZAR

250.0

 million general banking facility (“GBF

Facility”) which may be used for general corporate purposes. As of December 31, 2024, the Company had utilized ZAR

98.2

 million

of the bridge facility.

Interest on the Facility and the GBF Facility is calculated at the prime rate plus

1.80

%. The Facility and the GBF Facility are

unsecured and are required to be repaid in full on or before February 28, 2025.

9. Borrowings (borrowings) (continued)

South Africa (continued)

Connect Facilities, comprising long-term borrowings and a short-term facility

As of December 31, 2024, the Connect Facilities include (i) an overdraft facility (general banking facility) of ZAR

170.0

 million

(of which ZAR

170.0

 million ($

9.0

 million) has been utilized); (ii) Facility A of ZAR

700.0

 million ($

37.2

 million); (iii) Facility B of

ZAR

550.0

 million ($

29.2

 million) (both fully utilized); and (iv) an asset-backed facility of ZAR

200.0

 million ($

10.6

 million) (of

which ZAR

151.6

 million ($

8.1

 million) has been utilized).

On October 29, 2024, the Company, through its wholly owned subsidiary Cash Connect Management Solutions (Pty) Ltd, entered

into an addendum to a facility letter with RMB, to obtain a ZAR

100.0

 million temporary increase in its overdraft facility for a period

of approximately four months to specifically fund the purchase of prepaid airtime vouchers. This temporary increase is repayable in

equal daily instalments which commenced at the end of October 2024 with the final repayment due on February 15, 2025.

CCC Revolving Credit Facility, comprising long-term borrowings

As of December 31, 2024, the amount of the CCC Revolving Credit Facility was ZAR

300.0

 million (of which ZAR

215.7

million has been utilized). Interest on the Revolving Credit Facility is payable on the last business day of each calendar month and is

based on the South African prime rate in effect from time to time plus a margin of

0.9

0% per annum. 

RMB facility, comprising indirect facilities

As of December 31, 2024, the aggregate amount of the Company’s short-term South African indirect credit facility with RMB

was ZAR

135.0

 million ($

7.1

 million), which includes facilities for guarantees, letters of credit and forward exchange contracts. As of

December 31, 2024 and June 30, 2024, the Company had utilized ZAR

33.1

 million ($

1.8

 million) and ZAR

33.1

 million ($

1.8

 million),

respectively, of its indirect and derivative facilities of ZAR

135.0

 million (June 30, 2024: ZAR

135.0

 million) to enable the bank to

issue guarantees, letters of credit and forward exchange contracts (refer to Note 20).

Nedbank facility, comprising short-term facilities

As of December 31, 2024, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited

was ZAR

156.6

 million ($

8.3

 million). The credit facility represents indirect and derivative facilities of up to ZAR

156.6

 million ($

8.3

million), which include guarantees, letters of credit and forward exchange contracts.

As of December 31, 2024 and June 30, 2024, the Company had utilized ZAR

2.1

 million ($

0.1

 million) and ZAR

2.1

 million

($

0.1

 million), respectively, of its indirect and derivative facilities of ZAR

156.6

 million (June 30, 2024: ZAR

156.6

 million) to enable

the bank to issue guarantees, letters of credit and forward exchange contracts (refer to Note 20).

9. Borrowings (borrowings) (continued)

South Africa (continued)

(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar.

RMB

RMB

RMB

RMB

Nedbank

Facility E

Bridge

Indirect

Connect

Facilities

Total

Short-term facilities available as of

December 31, 2024

$

-

$

48,594

$

7,170

$

14,339

$

8,314

$

78,417

Overdraft 

-

48,594

-

14,339

-

62,933

Indirect and derivative facilities 

-

-

7,170

-

8,314

15,484

Movement in utilized overdraft

facilities: 

Restricted as to use for ATM

funding only

6,737

-

-

-

-

6,737

No restrictions as to use 

-

-

-

9,351

-

9,351

Balance as of June 30, 2024

6,737

-

-

9,351

-

16,088

Utilized 

23,893

43,200

-

5,655

-

72,748

Repaid

(31,028)

-

-

(3,374)

-

(34,402)

Guarantee fee paid

-

(431)

-

-

-

(431)

Foreign currency

adjustment

(1)

398

(2,683)

-

(566)

-

(2,851)

Balance as of December 31, 2024

-

40,086

-

11,066

-

51,152

No restrictions as to use 

$

-

$

40,086

$

-

$

11,066

$

-

$

51,152

Interest rate as of December 31,

2024 (%)

(2)

N/A

13.05

N/A

11.15

N/A

Movement in utilized indirect and

derivative facilities:

Balance as of June 30, 2024

$

-

$

-

$

1,821

$

-

$

116

$

1,937

Foreign currency adjustment

(1)

-

-

(63)

-

(4)

(67)

Balance as of December 31, 2024

$

-

$

-

$

1,758

$

-

$

112

$

1,870

Facilities

Lesaka

RMB 

G & H

Connect

RMB 

A&B

CCC 

RMB

Connect

Wesbank

Asset

backed

Total

Included in current

$

-

$

-

$

-

$

3,878

$

3,878

Included in long-term

56,151

66,815

11,841

4,501

139,308

Opening balance as of June 30, 2024

56,151

66,815

11,841

8,379

143,186

Facilities utilized

11,022

-

559

2,096

13,677

Facilities repaid

(3,911)

-

(554)

(2,117)

(6,582)

Non-refundable fees amortized

88

24

21

-

133

Capitalized interest

3,735

-

-

-

3,735

Capitalized interest repaid

(95)

-

-

-

(95)

Foreign currency adjustment

(1)

(2,374)

(2,302)

(414)

(307)

(5,397)

Closing balance as of December 31, 2024

64,616

64,537

11,453

8,051

148,657

Included in current

64,616

-

-

3,684

68,300

Included in long-term

-

64,537

11,453

4,367

80,357

Unamortized fees

-

(149)

-

-

(149)

Due within 2 years

-

4,978

-

2,873

7,851

Due within 3 years

-

7,634

11,453

1,119

20,206

Due within 4 years

-

52,074

-

333

52,407

Due within 5 years

$

-

$

-

$

-

$

42

$

42

Interest rates as of December 31, 2024 (%):

12.50

11.50

12.15

12.00

Base rate (%)

7.75

7.75

11.25

11.25

Margin (%)

4.75

3.75

0.90

0.75

Footnote number

(2)

(3)

(4)

(5)

(1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar.

(2) Interest on Facility G and Facility H is based on the JIBAR in effect from time to time plus a margin, which margin is

calculated as: (i)

5.50

% if the Look Through Leverage (“LTL”) ratio is greater than 3.50x; (ii)

4.75

% if the LTL ratio is less than

3.50x but greater than 2.75x; (iii)

3.75

% if the LTL ratio is less than 2.75x but greater than 1.75x; or (iv)

2.50

% if the LTL ratio is less

than 1.75x. The LTL ratio is expressed as times (“x”), and was introduced to calculate the margin used in the determination of the

interest rate. The LTL ratio is calculated as the Total Attributable Net Debt to the Total Attributable EBITDA, as defined in the

Company’s borrowing arrangements with RMB, for the measurement period ending on a specified date. 

(3) Interest on Facility A and Facility B is calculated based on JIBAR plus a margin, which margin is calculated as (i)

4.00

% if

the Leverage Ratio (“LR”) is greater than 3.50x; (ii)

3.75

% if the LR is less than 3.50x but greater than 2.50x; (iii)

3.40

% if the LTL

ratio is less than 2.50x.

(4) Interest is charged at prime plus

0.90

% per annum on the utilized balance.

(5) Interest is charged at prime plus

0.75

% per annum on the utilized balance.

Interest expense incurred under the Company’s South African long-term borrowings and included in the caption interest expense

on the condensed consolidated statement of operations during the three months ended December 31, 2024 and 2023, was $

4.3

 million

and $

4.1

 million, respectively. Prepaid facility fees amortized included in interest expense during the three months ended December

31, 2024 and 2023, respectively, were $

0.1

 million and $

0.1

 million, respectively. Interest expense incurred under the Company’s

K2020 and CCC facilities relates to borrowings utilized to fund a portion of the Company’s merchant finance loans receivable and

this interest expense of $

0.4

 million and $

0.4

 million, respectively, is included in the caption cost of goods sold, IT processing,

servicing and support on the condensed consolidated statement of operations for the three months ended December 31, 2024 and 2023.

(2) Facility E interest was set at prime, RMB Bridge at prime plus

1.8

% and the Connect facility at prime less

0.10

%.

Interest expense incurred under the Company’s South African short-term borrowings and included in the caption interest expense

on the condensed consolidated statement of operations during the three months ended December 31, 2024 and 2023, was $

1.8

 million

and $

0.6

 million, respectively. Interest expense incurred under the Company’s South African long-term borrowings and included in

the caption interest expense on the condensed consolidated statement of operations during the six months ended December 31, 2024

and 2023, was $

2.4

 million and $

1.3

 million, respectively.

The Company cancelled Adumo’s overdraft arrangements on October 1, 2024, and settled Adumo’s outstanding overdraft

balance of ZAR

20.0

 million ($

1.1

 million) on the same day. The repayment is included in the caption repayment of bank overdraft

included on the Company’s unaudited condensed consolidated statements of cash flows for the three and six months ended December

31, 2024.

9. Borrowings (continued)

Movement in long-term borrowings

Summarized below is the movement in the Company’s long-term borrowing from as of as of June 30, 2024 to as of December

31, 2024:

9. Borrowings (continued)

Movement in long-term borrowings (continued)

Interest expense incurred under the Company’s South African long-term borrowings and included in the caption interest expense

on the condensed consolidated statement of operations during the six months ended December 31, 2024 and 2023, was $

8.5

 million

and $

8.1

 million, respectively. Prepaid facility fees amortized included in interest expense during the six months ended December 31,

2024 and 2023, respectively, were $

0.1

 million and $

0.3

 million, respectively. Interest expense incurred under the Company’s CCC

facilities relates to borrowings utilized to fund a portion of the Company’s merchant finance loans receivable and this interest expense

of $

0.8

 million and $

0.7

 million, respectively, is included in the caption cost of goods sold, IT processing, servicing and support on

the condensed consolidated statement of operations for the six months ended December 31, 2024 and 2023.

The Company cancelled Adumo’s long-term borrowings arrangements on October 1, 2024, and settled Adumo’s outstanding

balances of ZAR

126.7

 million ($

7.2

 million) on the same day. The repayment is included in the caption repayment of long-term

borrowings included on the Company’s unaudited condensed consolidated statements of cash flows for the three and six months ended

December 31, 2024.