| 2014 Rm |
2013 Rm |
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9. |
Borrowings |
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Summary – Balances |
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| Convertible bonds – ZAR | 2 429 | 2 365 | |
| Convertible bonds – US dollar | 1 981 | 1 803 | |
| 4 410 | 4 168 | ||
| Short-term portion | (150) | (82) | |
| Long-term portion | 4 260 | 4 086 | |
Summary – Movement |
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| Beginning of the year | 4 168 | – | |
| Proceeds | — | 3 908 | |
| Interest accrued | 257 | 82 | |
| Repayments | (155) | — | |
| Exchange adjustment | 140 | 178 | |
| End of the year | 4 410 | 4 168 | |
| Proceeds of R4 466 from the convertible bond issue, which together with interest of R253 (2013: R84) million and payments of R243 (2013: R nil) million was placed on deposit with Impala, totalling R4 560 (2013: R4 550) million. | |||
(i) Convertible bonds – ZAR |
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| Beginning of the year | 2 365 | – | |
| Proceeds | — | 2 300 | |
| Interest accrued | 198 | 65 | |
| Repayments | (134) | – | |
| End of the year | 2 429 | 2 365 | |
| Short-term portion | (129) | (65) | |
| Long-term portion | 2 300 | 2 300 | |
| The ZAR denominated bonds have a par value of R2 672 million and carry a coupon of 5% (R133.6 million) per annum. The coupon is payable bi-annually for a period of five years ending 21 February 2018. The bond holder has the option to convert the bonds to Implats shares at a price of R214.90. The value of this compound instrument’s equity portion relating to conversion is R319 million (before tax). Implats has the option to call the bonds at par plus accrued interest at any time on or after 21 February 2016, if the aggregate value of the underlying shares per bond for a specified period of time is 130% or more of the principal amount of that bond. The effective interest rate of the bond is 8.5% (2013: 8.5%). | |||
(ii) Convertible bonds – US$ |
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| Beginning of the year | 1 803 | – | |
| Proceeds | — | 1 608 | |
| Interest accrued | 59 | 17 | |
| Repayments | (21) | – | |
| Exchange adjustment | 140 | 178 | |
| End of the year | 1 981 | 1 803 | |
| Short-term portion | (21) | (17) | |
| Long-term portion | 1 960 | 1 786 |
| The US$ denominated bonds have a par value of US$200 million and carry a coupon of 1% (US$2 million) per annum. The coupon is payable bi-annually for a period of five years ending 21 February 2018. The bond holder has the option to convert the bonds to Implats shares at a price of US$24.13. The value of this conversion option derivative was R106 million at initial recognition. Implats has the option to call the bonds at par plus accrued interest at any time on or after 21 February 2016, if the aggregate value of the underlying shares per bond for a specified period of time is 130% or more of the principal amount of that bond. The effective interest rate is 3.1% (2013: 3.1%). |