Annual financial statements statement 2015
Supplement to the integrated annual report 30 June 2015
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COMPANY FINANCIAL STATEMENTS

MENU Notes to the Company financial statements — for the year ended 30 June 2015

  1. Accounting policies
  2. Investments in associates and joint venture
  3. Investments in subsidiaries
  4. Loan – Impala
  5. Other financial assets
  6. Cash and cash equivalents
  7. Share capital
  8. Deferred tax
  9. Borrowings
  10. Other financial liabilities
  11. Finance and investment income
  12. Other income
  13. Other expenses
  14. Income tax expense
  15. Dividends per share
  16. Contingent liabilities and guarantees
  17. Cash generated from operations
  18. Related-party transactions
  19. Financial risk management
      2015   2014  
    Notes   Rm   Rm  

9.  

Borrowings  

      
  Convertible bonds – ZAR   9.1   2 499   2 429  
  Convertible bonds – US$   9.2   2 313   1 981  
      4 812   4 410  
  Current     (158)  (150) 
  Non-current     4 654   4 260  
         
  Beginning of the year     4 410   4 168  
  Interest accrued     270   257  
  Repayments     (156)  (155) 
  Exchange adjustment     288   140  
  End of the year     4 812   4 410  
  Proceeds of R4 466 from the convertible bond issue, which together with interest of R254 (2014: R253) million and payments of R243 (2014: R243) million was advanced to Impala, totalling R4 571 (2014: R4 560) million.  

9.1  

Convertible bonds – ZAR  
  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 semi-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 was R319 million (before tax) on issue. 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% (2014: 8.5%).  

9.2  

Convertible bonds – US$  
  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 semi-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% (2014: 3.1%).