Borrowings

9 Months Ended

Mar. 31, 2025

Borrowings [Abstract]

Borrowings

Movement in short-term credit facilities

Summarized below are the Company’s short-term facilities as of March 31, 2025, and the movement in the Company’s short-

term facilities from as of June 30, 2024 to as of March 31, 2025:

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 in regular contact with its lenders and negotiate changes to the existing borrowing agreements once there

is greater clarity on the implementation of ZARONIA.

South Africa

The amounts below have been translated at exchange rates applicable as of the dates specified. 

On February 27, 2025, the Company, Lesaka SA and a number of other subsidiaries of Lesaka SA entered into a Common Terms

Agreement (the “CTA”) with FirstRand Bank Limited (acting through its Rand Merchant Bank division) (“RMB”), FirstRand Bank

Limited (acting through its WesBank division) (“WesBank”), FirstRand Bank Limited being a South African corporate and investment

bank, Investec Bank Limited (acting through its Investment Banking division: Corporate Solutions) (“Investec” and together with

RMB and WesBank, the “Lenders”), a South African corporate and investment bank, and Bowwood and Main No 408 (RF) Proprietary

Limited (“Debt Guarantor”), a South African company incorporated for the sole purpose of holding collateral for the benefit of the

Lenders and acting as debt guarantor, and certain other parties. 

Lesaka SA has obtained

three

 loan facilities from the Lenders, a term loan of up to ZAR

2.2

 billion ($

117.5

 million) (“Facility

A”), an amortizing loan of up to ZAR

1.0

 billion ($

54.5

 million) (“Facility B”) and a senior revolving credit facility of up to ZAR

2.2

billion ($

117.5

 million) (“Senior RCF”), and a general banking facility from RMB of up to ZAR

700.9

 million ($

38.2

 million) (the

“GBF”, and collectively with Facility A, Facility B and Senior RCF, the “Facilities”), which are described in more detail below.

The Company , Lesaka SA and the majority of Lesaka SA’s directly and indirectly wholly-owned subsidiaries have agreed to

guarantee the obligations of Lesaka SA and of the other borrowers under the Facilities to the Lenders.

The CTA contains customary covenants which includes a requirement for Lesaka SA to maintain specified Net Debt to EBITDA

and Interest Cover Ratios (as defined in the CTA) and restricts the ability of Lesaka SA, and certain of its subsidiaries to make certain

distributions with respect to their capital stock, prepay other debt, encumber their assets, incur additional indebtedness, make

investment above specified levels, engage in certain business combinations and engage in other corporate activities. The CTA provides

that if any subsidiary of the Company receives proceeds from the disposal of shares in/claims against, or assets of MobiKwik, it would

offer to prepay the certain specified loans/facilities and loan outstandings to the Lenders (as contemplated in the CTA).

Lesaka SA paid non-refundable debt structuring fees of ZAR

10.0

 million to the Lenders on February 27, 2025.

The JIBAR, an average of 3 month negotiable certificates of deposit (“NCD”) rates, on March 31, 2025, was

7.56

%. The prime

rate, the benchmark rate at which private sector banks lend to the public in South Africa, on March 31, 2025, was

11.00

%.

Facilities obtained in February 2025

Long-term borrowings – Senior Facility A Agreement

Concurrent with the execution of the CTA, Lesaka SA, the Lenders and RMB (as facility agent) entered into a Senior Term

Facility A Agreement (“Facility A Agreement”) and a Senior RCF Agreement (“RCF Agreement”). Pursuant to the Facility A

Agreement, Lesaka SA may borrow up to an aggregate amount of ZAR

2,2

 billion for the sole purpose of refinancing the existing

facilities of Lesaka SA and Cash Connect Management Solutions Proprietary Limited’s (“CCMS”) with RMB, funding transaction

costs and for general corporate purposes. Lesaka SA utilized Facility A in full on February 28, 2025, to settle a portion of its existing

facilities with RMB and to settle all of CCMS’ existing facilities with RMB, as well as to pay certain transaction costs.

Facility A is required to be repaid in full on February 28, 2029. Facility A is subject to customary mandatory prepayment terms.

Lesaka SA is permitted to make voluntary prepayments of Facility A, and is permitted to subsequently utilize any voluntary

prepayments made under Facility A under the RCF Agreement. Amount utilized under the RCF Agreement are required to be repaid

in full on February 28, 2029. 

9. Borrowings (borrowings)

South Africa (continued)

Facilities obtained in February 2025 (continued)

Long-term borrowings – Senior Facility A Agreement (continued)

Interest on Facility A and utilization under the RCF Agreement is payable quarterly in arrears at end of March, June, September

and December, with the first interest payment due on June 30, 2025. Interest on Facility A is based on JIBAR in effect from time to

time plus an initial margin of

3.25

% per annum until June 30, 2025. From July 1, 2025, the margin on Facility A will be determined

with reference to the Net Debt to EBITDA Ratio, and the margin will be either (i)

3.25

%, if the Net Debt to EBITDA Ratio is greater

than or equal to 2.5 times; or (ii)

2.5

%, if the Net Debt to EBITDA Ratio is less than 2.5 times.

Long-term borrowings – Senior Facility B Agreement

Concurrent with the execution of the CTA, Lesaka SA, the Lenders and RMB (as facility agent) entered into a Senior Term

Facility B Agreement (“Facility B Agreement”). Pursuant to the Facility B Agreement, Lesaka SA may borrow up to an aggregate of

ZAR

1.0

 billion for the sole purpose of refinancing the Lesaka SA existing facilities, including its general banking facilities, with

RMB, and for general corporate purposes. Lesaka SA utilized Facility B in full on February 28, 2025, to repay a portion of its existing

facilities as well as to settle a portion of its existing general banking facility.

Facility B is required to be repaid in

four

 annual installments, as follows: (i) ZAR

150

 million ($

8.2

 million) on February

28, 2026; (ii) ZAR

200

 million ($

10.9

 million) on February 28, 2027; (iii) ZAR

300

 million ($

16.3

 million) on February 28, 2028; and

(iv) R

350

 million ($

19.1

 million) on February 28, 2029. Facility B is subject to customary mandatory prepayment terms. Lesaka SA

is permitted to make voluntary prepayments of Facility B, however it is unable to subsequently utilize any amounts prepaid.

Interest on Facility B is payable quarterly in arrears at end of March, June, September and December, with the first interest

payment due on June 30, 2025. Interest on Facility B is based on JIBAR in effect from time to time plus an initial margin of

3.15

%

per annum until June 30, 2025. From July 1, 2025, the margin on Facility B will be determined with reference to the Net Debt to

EBITDA Ratio, and the margin will be either (i)

3.15

%, if the Net Debt to EBITDA Ratio is greater than or equal to 2.5 times; or (ii)

2.4

%, if the Net Debt to EBITDA Ratio is less than 2.5 times. 

Short-term facility - General Banking Facility

Concurrent with the execution of the CTA, Lesaka SA and RMB entered into a General Banking Facility Agreement (“GBF

Agreement”) which replaced it existing general banking facility maturing on February 28, 2025. Pursuant to the GBF Agreement,

Lesaka SA and certain of its subsidiaries may borrow up to an aggregate of ZAR

700.9

 million for general corporate expenditure

(including capital expenditure) and working capital purposes of the Lesaka SA and certain of its subsidiaries. Lesaka SA utilized a

portion of the GBF to refinance its existing general banking facility. As of March 31, 2025, the Company had utilized ZAR

432.2

million ($

23.6

 million) of this facility.

The GBF is available for utilization from February 28, 2025, and is subject to annual review by RMB. 

Interest on the GBF is payable monthly and is based on the South African prime rate in effect from time to time less

0.50

%.

The GBF Agreement also provides Lesaka SA and certain of its subsidiaries with other facilities in an aggregate of ZAR

100.7

million ($

5.5

 million), which indirect, short-term direct and contingent facilities, including bank guarantee, forward exchange contract,

credit card and settlement facilities. As of March 31, 2025, the aggregate amount of the Company’s short-term South African indirect

credit facility with RMB was ZAR

100.7

 million ($

5.5

 million). As of March 31, 2025, the Company had utilized ZAR

33.1

 million

($

1.8

 million) of its other facilities to enable the bank to issue guarantees, letters of credit and forward exchange contracts (refer to

Note 20).

Wesbank Facilities

The Company, through certain of its South African subsidiaries, has an asset-backed facility of ZAR

227.0

 million ($

10.9

million)] (of which ZAR

139.3

 million ($

7.6

 million) has been utilized).

CCC Revolving Credit Facility, comprising long-term borrowings

As of March 31, 2025, the amount of the CCC Revolving Credit Facility was ZAR

300.0

 million (of which ZAR

299.9

 million

has been utilized). The CCC Revolving Credit Facility was scheduled to be repaid in full on November 2024, but this has been extended

to June 30, 2025. The Company is currently renegotiating terms with RMB. The CCC Revolving Credit Facility has been presented

in current portion of long-term borrowings in the unaudited condensed consolidated balance sheet as of March 31, 2025. 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

0.95

% per annum. 

9. Borrowings (borrowings)

South Africa (continued)

Nedbank facility, comprising short-term facilities

As of March 31, 2025, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited

was ZAR

156.6

 million ($

8.5

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

156.6

 million ($

8.5

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

As of March 31, 2025 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).

In terms of a commitment provided to the lender under the CTA entered into on February 27, 2025, the Company has undertaken

not to utilize more than ZAR

5.0

 million ($

0.3

 million) of the Nedbank Facility.

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

Long-term borrowings - Facility G and Facility H – all repaid and cancelled

On February 28, 2025, the Company used its new borrowings to settle Facility G and Facility H in full, including accumulated

interest of ZAR

201.7

 million ($

10.9

 million). These facilities, excluding accrued interest, included (i) Facility G of ZAR

492.1

 million

($

26.6

 million); (ii) Facility H of ZAR

350.0

 million ($

18.9

 million); and (iii) a Facility G revolver of ZAR

200.0

 million ($

10.8

million) (of which ZAR

199

 million ($

10.8

 million) had been utilized at February 28, 2025). These facilities were repaid in full on

February 28, 2025, utilizing funding obtained under the CTA and the Facility G and Facility H agreements were cancelled. Amounts

translated at rates prevailing on the repayment date. The interest rate on these facilities was JIBAR plus a margin of

4.75

%.

The Company had a short-term South African indirect credit facility with RMB under its cancelled lending facilities of ZAR

135.0

 million ($

7.4

 million), which included facilities for guarantees, letters of credit and forward exchange contracts. As of June 30,

2024, the Company had utilized ZAR

33.1

 million ($

1.8

 million), of these facilities to enable the bank to issue guarantees, letters of

credit and forward exchange contracts (refer to Note 20).

Short-term facility - Facility E – cancelled in November 2024

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 “Bridge Facility”). The Bridge Facility was 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 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 provided 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 provided Lesaka SA with an additional ZAR

250.0

 million general banking facility (“2024

GBF Facility”) which could be used for general corporate purposes. The Bridge Facility and 2024 GBF Facility were repaid in full on

February 28, 2025, utilizing funding obtained under the CTA and the agreements cancelled. 

Interest on the Bridge Facility and the 2024 GBF Facility was calculated at the prime rate plus

1.80

%. The Bridge Facility and

the 2024 GBF Facility were unsecured and were repaid in full on February 28, 2025, the maturity date, pursuant to the refinancing

process.

9. Borrowings (borrowings)

South Africa (continued)

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

The Connect Facilities included (i) an overdraft facility (general banking facility) of ZAR

170.0

 million ($

9.2

 million); (ii)

Facility A of ZAR

700.0

 million ($

37.9

 million); (iii) Facility B of ZAR

550.0

 million ($

29.8

 million) (both were fully utilized). These

facilities were repaid in full on February 28, 2025, utilizing funding obtained under the CTA and the agreements cancelled. Amounts

translated at rates prevailing on the repayment date.

On October 29, 2024, the Company, through CCMS, 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 was repayable in equal daily instalments which commenced at the end of October

2024 with the final repayment made on February 15, 2025.

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

RMB

RMB

Nedbank

RMB

RMB

RMB

GBF

Other

Facilities

Connect

Bridge

Facility E

Total

Short-term facilities available as of

March 31, 2025

$

38,195

$

5,487

$

8,531

$

-

$

-

$

-

$

52,213

Overdraft 

38,195

-

-

-

-

-

38,195

Indirect and derivative facilities 

-

5,487

8,531

-

-

-

14,018

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

-

-

-

9,351

-

6,737

16,088

Utilized 

23,489

-

-

5,655

41,150

23,894

94,188

Repaid

-

-

-

(14,627)

(39,205)

(31,028)

(84,860)

Foreign currency

adjustment

(1)

61

-

-

(379)

(1,945)

397

(1,866)

Balance as of March 31, 2025

23,550

-

-

-

-

-

23,550

No restrictions as to use 

$

23,550

$

-

$

-

$

-

$

-

$

-

$

23,550

Interest rate as of March 31, 2025

(%)

(2)

10.50

N/A

N/A

N/A

-

N/A

Movement in utilized indirect and

derivative facilities:

Balance as of June 30, 2024

$

-

$

1,821

$

116

$

-

$

-

$

-

$

1,937

Foreign currency adjustment

(1)

-

(17)

(1)

-

-

-

(18)

Balance as of March 31, 2025

$

-

$

1,804

$

115

$

-

$

-

$

-

$

1,919

Facilities

Lesaka A

Lesaka B

Connect

Asset

backed

CCC

(6)

Lesaka

G & H

Connect

A&B

Total

Included in current

$

-

$

-

$

3,878

$

11,841

$

-

$

-

$

15,719

Included in long-term

-

-

4,501

-

56,151

66,815

127,467

Opening balance as of June

30, 2024

-

-

8,379

11,841

56,151

66,815

143,186

Facilities utilized

116,652

54,112

2,619

5,091

11,022

-

189,496

Facilities repaid

-

-

(3,299)

(554)

(60,245)

(65,910)

(130,008)

Non-refundable fees paid

970

-

-

-

-

-

970

Non-refundable fees

amortized

39

-

-

21

116

32

208

Capitalized interest

-

-

-

-

5,033

-

5,033

Capitalized interest repaid

-

-

-

-

(11,077)

-

(11,077)

Foreign currency

adjustment

(1)

(1,393)

382

(106)

(54)

(1,000)

(937)

(3,108)

Closing balance as of

March 31, 2025

116,268

54,494

7,593

16,345

-

-

194,700

Included in current

-

8,174

3,569

16,345

-

-

28,088

Included in long-term

116,268

46,320

4,024

-

-

-

166,612

Unamortized fees

(1,206)

-

-

-

-

-

(1,206)

Due within 2 years

-

10,899

2,665

-

-

-

13,564

Due within 3 years

-

16,348

1,047

-

-

-

17,395

Due within 4 years

117,474

19,073

301

-

-

-

136,848

Due within 5 years

$

-

$

-

$

11

$

-

$

-

$

-

$

11

Interest rates as of March 31,

2025 (%):

10.81

10.71

11.75

11.95

-

-

Base rate (%)

7.56

7.56

11.00

11.00

-

-

Margin (%)

3.25

3.15

0.75

0.95

-

-

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 A and Facility B is based on the JIBAR in effect from time to time plus an initial margin of

3.25

% per

annum until June 30, 2025. From July 1, 2025, the margin on Facility A will be determined with reference to the Net Debt to EBITDA

Ratio, and the margin will be either (i)

3.25

%, if the Net Debt to EBITDA Ratio is greater than or equal to 2.5 times; or (ii)

2.5

%, if

the Net Debt to EBITDA Ratio is less than 2.5 times. 

(3) Interest on Facility B is calculated based on JIBAR from time to time plus an initial margin of

3.15

% per annum until June

30, 2025. From July 1, 2025, the margin on Facility B will be determined with reference to the Net Debt to EBITDA Ratio, and the

margin will be either (i)

3.15

%, if the Net Debt to EBITDA Ratio is greater than or equal to 2.5 times; or (ii)

2.4

%, if the Net Debt to

EBITDA Ratio is less than 2.5 times.

(4) Interest is charged at prime plus

0.75

% per annum on the utilized balance.

(5) Interest is charged at prime plus

0.95

% per annum on the utilized balance.

(6) Amounts presented as of June 30, 2024, have been revised, refer to Note 1 for additional information. The amount as of June

30, 2024, was incorrectly classified as long-term borrowings, instead of as current portion of long-term borrowings.

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 March 31, 2025 and 2024, was $

4.4

 million and

$

4.0

 million, respectively. Prepaid facility fees amortized included in interest expense during the three months ended March 31, 2025

and 2024, 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 March 31, 2025 and 2024.

(2) RMB GBF interest is set at prime less

0.50

%.

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 March 31, 2025 and 2024, 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 nine months ended March 31, 2025 and

2024, was $

3.6

 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 nine months ended March 31, 2025.

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 March 31,

2025:

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 nine months ended March 31, 2025 and 2024, was $

12.9

 million

and $

12.1

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

2025 and 2024, respectively, were $

0.2

 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 $

1.2

 million and $

1.1

 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 nine months ended March 31, 2025 and 2024.

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 nine months ended March

31, 2025.