20. OTHER FINANCIAL LIABILITIES
 
Figures in Rand thousand     2020     2019    
Interest-bearing liabilities     2 739 175     2 980 602    
Interest-bearing bank loans secured through Security SPV     2 267 269     2 292 881    
Bank overdrafts     115 253     –    
Project finance loan**     135 080     127 051    
Unsecured interest-bearing bank loans     215 247     548 168    
Interest-bearing bank loans secured by fixed property     6 326     12 502    
Non-interest-bearing liabilities     44 043     352 603    
Vendors for acquisition     44 043     303 313    
Other non-interest-bearing liabilities     –     49 290    
Liabilities directly associated with assets held for sale (note 14)    (29 516)    (9 248)   
   2 753 702     3 323 957    
Non-current financial liabilities     5 674     2 255 825    
Current financial liabilities     2 748 028     1 068 132    
   2 753 702     3 323 957    
Reconciliation of other financial liabilities 
Balance at the beginning of the year     3 333 205     4 103 996    
Bank overdrafts     115 253     –    
Proceeds from other financial liabilities     –     967 307    
Repayment of other financial liabilities     (321 128)    (1 379 569)   
Repayment of vendors for acquisitions     (75 286)    (366 413)   
Disposal of subsidiaries     (244 266)    (64 406)   
Net changes in fair value     3 685     33 199    
Interest accrued on other financial liabilities     38 867     –    
Capitalisation of debt restructuring fee     (51 028)    –    
Other non-cash items     (16 084)    39 091    
Closing balance before liabilities directly associated with assets held for sale     2 783 218     3 333 205    
Liabilities directly associated with assets held for sale (note 14)     (29 516)    (9 248)   
   2 753 702     3 323 957    
Financial instruments 
Measured at amortised cost     2 709 659     3 020 644    
Financial liabilities carried at fair value through profit or loss     44 043     303 313    
   2 753 702     3 323 957    
Vendors for acquisition*** 
Current financial liabilities     44 043     303 313    
   44 043     303 313    
 

** Ring-fenced debt.

*** R36 million of the balance was extinguished subsequent to year end, relating to MARS Holdings Proprietary Limited. Refer to note 42.

Interest-bearing bank loans are secured through a Security SPV which require that all the South African wholly owned subsidiaries of the Group provide a pledge and cession of:

  • all shares in, and claims on loan account against, any member of the Group incorporated in South Africa;
  • cash;
  • cash equivalents;
  • bank accounts;
  • investments;
  • claims;
  • disposal proceeds;
  • any other amounts, of any nature whatsoever, now or from time to time in the future owing to that Obligor by any third person arising out of any cause of action whatsoever, including, without limitation, all amounts owing or becoming payable to that Obligor by any of its debtors; and
  • related rights.

South African wholly owned subsidiaries contributing more than 80% of the Group's adjusted EBITDA is pledged as required above, but not all South African subsidiaries have formally provided the required security and the process of providing the security is ongoing.

The interest-bearing bank loans secured through Security SPV comprises:

  • an amortising facility at an interest rate of 3-month Johannesburg Interbank Average Rate (JIBAR) + 265 basis points;
  • revolving credit facility at an interest rate of 3-month JIBAR + 220 basis points; and
  • a bullet facility at an interest rate of 3-month JIBAR + 285 basis points.

From 1 April 2019 the secured lenders have charged an additional 250 basis points of default interest on top of the above fully drawn facilities.

The unsecured core debt comprises:

  • Sanlam Note at an interest rate of 3-month JIBAR + 225 basis points.

The 3 month JIBAR referred to above is reset quarterly.

Refer to note 42 for subsequent events on the above loans.