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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued AFRICAN DAWN 89 ANNUAL REPORT 2015 17. Borrowings (continued) Loan Balance Present Value adjustment Deemed Interest Balance GROUP 2014 R’000 National Housing Finance Corporation ("NHFC") - Nexus went in to liquidation and has thus been deconsolidated. The loan is secured by a cession on the Nexus debtors. The loan originated as funding for incremental loans in 2004 raised as trade debtors. The loan is secured on the debtors book that the funds were used to fund and are secured to the extent of the loan against the same debtors (refer to note 12). 5,000 - - 5,000 National Housing Finance Corporation ("NHFCE") - Elite entered into a separate facility agreement whereby the loan is secured by the associated debtors, bears interest at prime +5% and is repayable over 5 years from the borrowing date. Afdawn has provided a guarantee on the loan facility. (Refer to note 12). 4,456 - - 4,456 Sandown Capital Proprietary Limited # (A) - The conversion bond was renegotiated and the new terms are: the loan is unsecured, interest is charged at 9.25% per annum and linked to Standard Bank prime interest rate. Repayments are up to an amount of R700,000 plus interest per month in the short term. 12,486 - - 12,486 Elite Two loan - The loan is unsecured, interest free and changes on a daily transactional basis. 2,067 - - 2,067 Convertible Bond - Liability portion of compound instrument (STRB Lewende Trust) - The conversion period is 36 months from date of issue, conversion price R0.14, Interest levied at JIBAR on 3 month discount + 600 basis points. Refer to note 19 for further details. The bond has no further security beyond the issue of ordinary shares in Afdawn. The bond was settled for cash during the financial year. 1,663 - - 1,663 Nedbank mortgage bond - The loan is secured on fixed property. Interest is levied at prime -0.5% and the loan is repayable in instalments of R168,450 per month. The bond arose as part of a property in possession transaction. Refer to property in possession note 10 , Greenoaks. The monthly instalments are funded through the cash generated through operations at Greenoaks. 10,074 - - 10,074 35,746 - - 35,746


AFRICAN DAWN 2015 Annual Report
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