Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 24

4.2.2 Current interest-bearing loans GROUP Short-term loans Commodity finance Total 2018 R’m 2017 R’m 1 836 1 572 149 2 1 985 1 574 Movements in financial liabilities only consist of cash flow items. SHORT-TERM LOANS Absa Bank As continuing security for Senwes’ current facilities with Absa Bank Ltd (Absa), all rights and interest to producer debtors and their underlying security have been ceded and pledged to Absa. The Absa loan is renewable annually and the current facilities bear interest at a sub-prime-linked rate, capitalised on a monthly basis. Senwes has an Absa facility of R3 billion available and at year- end only R1,8 billion (2017: R1,6 billion) had been utilised. Nedbank A short-term loan of R125 million was granted from Nedbank during April 2018. The loan bears interest at a sub-prime linked rate. The loan is additional to the R1 billion long-term facility with Nedbank and is secured by the same assests. Refer to note 4.2.3 below. COMMODITY FINANCE The carrying value of the finance approximates the fair value of the underlying commodities. Commodities which are pledged as security are reflected in note 9. Commodity finance bears interest at a sub-prime-linked rate and is capitalised monthly. 4.2.3 Non-current interest-bearing loans GROUP Interest-bearing loans 2018 R’m 2017 R’m 1 002 1 002 Movements in financial liabilities only consist of cash flow items. THE GROUP HAS THE FOLLOWING NON-CURRENT INTEREST-BEARING LOANS: • A facility of R650 million with Nedbank, effective from 29 May 2015. The facility was fully utilised on 29 May 2015. This loan is repayable as a balloon payment on 1 June 2020 and bears interest at a sub-prime-linked rate. Interest is paid on a monthly basis, therefore only the capital amount will be repayable at the end of the term. • A facility of R350 million with Nedbank, effective from 30 April 2015. The facility was fully utilised as at 30 April 2015. This loan is repayable as a balloon payment on 1 May 2020 and bears interest at a sub-prime-linked rate. Interest is paid on a monthly basis, therefore only the capital amount will be repayable at the end of the term. • Assets (silos) with a market value of R1,8 billion, set as security at the bank, and a carrying amount of R832 million, serve as security for the above-mentioned long-term loans. • The loan of R2 million is payable by JD Implemente (Pty) Ltd to Tomlinson Family Trust. This loan is interest-free, has no fixed repayment terms and is unsecured. 4.2.4 Bank overdraft GROUP Absa Bank COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m 35 29 32 29 Senwesbel has an unsecured facility of R50 million with Absa Bank, effective from August 2015. The facility carries interest at a prime-linked rate, is renewable annually and immediately claimable. 23 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2018 Senwesbel Limited Reg no: 1996/017629/06