Exxaro report selector 2019

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Exxaro Resources Limited
Group and company annual financial statements for the year ended 31 December 2019

Currently viewing: CHAPTER 17 / 17.5 Summary of indebtedness by/(to) subsidiaries

17.5 Summary of indebtedness by/(to) subsidiaries

    Company  
    Gross carrying amount   Impairment allowances   Net carrying amount
At 31 December  Note  2019
Rm 
  2018
Rm 
    2019
Rm 
  2018
Rm 
    2019
Rm 
  2018
Rm 
 
Indebtedness by subsidiaries                               
Non-current    7 000    3 500                7 000    3 500   
Interest-bearing loans receivable  10.2.2  7 000    3 500                7 000    3 500   
Current    5 134    2 792      (62)   (60)     5 072    2 732   
Interest-bearing loans receivable  10.2.2  60    586                60    586   
Non-interest-bearing loans  receivable1  10.2.2  421    401      (62)   (60)     359    341   
Interest-bearing treasury facilities receivable  10.2.2  4 038    1 611                4 038    1 611   
Indebtedness by subsidiaries  6.2.3  615    194                615    194   
Total indebtedness by subsidiaries  17.6  12 134    6 292      (62)   (60)     12 072    6 232   
Indebtedness to subsidiaries                               
Current    (13 900)   (10 088)               (13 900)   (10 088)  
Non-interest-bearing loans payable  12.1.7  (8 452)   (8 197)               (8 452)   (8 197)  
Interest-bearing treasury facilities payable  12.1.7  (5 448)   (1 886)               (5 448)   (1 886)  
Indebtedness to subsidiaries  6.2.4      (5)                   (5)  
Total indebtedness to subsidiaries        17.6  (13 900)   (10 088)               (13 900)   (10 088)  
Net indebtedness to subsidiaries    (1 766)   (3 796)     (62)   (60)     (1 828)   (3 856)  
1 The impairment allowances relate to the following subsidiaries which have been fully impaired:
  – Colonna Properties Proprietary Limited of R1 million (2018: R1 million)
  – Exxaro Mountain Bike Academy NPC of R16 million (2018: R15 million)
  – Gravelotte Iron Ore Company Proprietary Limited R45 million (2018: R44 million).

Terms and conditions of indebtedness

Non-interest-bearing loans

The loans are unsecured, have no repayment terms and are repayable on demand.

Interest-bearing treasury facilities

The treasury facilities are unsecured, have no repayment terms and are repayable on demand. Interest is charged at money-market rates.

Indebtedness (trade related)

Certain subsidiaries are charged corporate service fees which are repayable within 30 days.

Interest-bearing loans receivable

The back-to-back loans have similar terms as agreed with external lenders except for interest which is charged based on JIBAR plus a margin. Refer note 12.1.4 for detailed terms and conditions of the external borrowings.

The closing interest rates at 31 December as well as the applicable margin achieved for the back-to-back loans are summarised below:

  JIBAR plus margin (%)   Margin (%)  
  2019   2018     2019   2018  
Revolving credit facility 10.18         3.80      
Bullet term loan 10.19   10.43     3.40   3.4  
Bond – R357 million 8.45         1.65      
Bond – R643 million 8.69         1.89      
Bond – R520 million     8.97         1.95  

 

  Company  
  Net carrying amount  
At 31 December 2019
Rm
  2018
Rm
 
Summary by financial year of redemption:        
Less than six months 60   586  
Between one and two years 2 750  
Between two and three years 3 607   3 250  
Between three and four years     250  
Between four and five years 643      
Total interest-bearing loans receivable 7 060   4 086  
Exxaro Coal Proprietary Limited 7 060   3 832  
Exxaro Coal Mpumalanga Proprietary Limited     254