NOTES TO THE ANNUAL FINANCIAL STATEMENTS | NOTE 28

    Facility
Rm		 Secured by
investment
property at
fair value
Rm		 Capital
repayment
date		 Interest
rate		   2015
Rm		   2014
Rm
28. NON-CURRENT FINANCIAL LIABILITIES                
28.1 Variable-rate loans – secured by investment property                
  South Africa                
    600   30 Nov 2017 3m Jibar* + 1.35%   600   –
    650   30 Nov 2017 3m Jibar + 1.35%   –   –
    1 250 2 909            
    600   27 Mar 2017 Prime – 1.90%   –   –
    1 000   7 Jun 2017 3m Jibar + 1.70%   1 000   1 000
    500   8 Dec 2017 3m Jibar + 1.35%   500   –
    500   25 Sep 2018 Prime – 1.70%   –   –
    500   4 March 2019 3m Jibar + 1.45%   500   500
    500   8 Dec 2019 3m Jibar + 1.45%   500   –
    500   15 May 2020 3m Jibar + 1.50%   500   –
    4 100 8 104            
    7501   1 Feb 2016 3m Jibar + 1.53%   750   750
    2501   1 Feb 2016 3m Jibar + 1.53%   250   250
    1 000 2 486            
    7196   31 May 2016 Prime – 2.30%   719   –
    7946   30 Apr 2018 Prime – 1.80%   793   –
    2606   31 May 2016 Prime – 1.65%   260   –
    7026   31 May 2016 Prime – 1.70%   447   –
    2016   24 May 2016 Prime – 1.90%   201   –
    5016   9 Dec 2016 Prime – 1.85%   292   –
    5016   31 Mar 2017 Prime – 1.90%   501   –
    5016   5 Dec 2016 Prime – 1.75%   376   –
    4 179 5 978            
    950   1 Dec 2016 Prime – 1.75%   672   –
    702   1 Dec 2016 Prime – 1.70%   702   –
    501   2 Jan 2018 Prime – 1.80%   501   –
    150   3 Apr 2017 Prime – 1.90%   150   –
    2 303 4 137            
    500   1 Jan 2017 Jibar + 1.45%   471   –
    400   1 Jan 2019 Jibar + 1.70%   250   –
    3503   30 Sep 2015 Jibar + 1.15%   350   –
    450   30 Jun 2016 Prime – 1.70%   450   –
    1 700 2 967            
    703 2 338 28 Feb 2024 3m Jibar + 2.25%   703   703
    1 200 2 989 7 Jun 2021 3m Jibar + 1.90%   1 200   1 200
    800 1 607 31 Oct 2016 3m Jibar + 1.42%   800   800
    300 750 16 Sep 2019 3m Jibar + 1.45%   300   –
    220 339 9 Dec 2015 Prime – 0.65%   220   181
    3402 1 145 31 Mar 2022 3m Jibar + 1.70%   340   –
    263 541 30 Jun 2019 Jibar + 1.50%   263   –
    600 2 058 03 Oct 2016 Jibar + 1.50%   600   –
  Nominal value of long-term interest-bearing loans – carried forward           16 161   5 384
28.2 Variable-rate loans – unsecured                
    1 000   30 Sep 2019 1m Jibar + 1.55%   1 000   1 000
    1 000   14 Dec 2018 1m Jibar + 1.70%   1 000   500
    1 000   15 Feb 2016 1m Jibar + 1.38%   557   246
    1 4844   2 Jan 2018 1m Jibar + 1.26%   –   –
    7424   2 Jan 2022 1m Jibar + 1.26%   136   25
    7424   2 Jan 2024 3m Jibar + 1.45%   136   25
    350   10 Dec 2020 1m Jibar + 1.70%   350   –
    600   27 Nov 2020 3m Jibar + 1.55%   600   –
    400   31 Mar 2022 3m Jibar + 1.85%   400   –
    400   11 Aug 2015 3m Jibar + 0.36%   400   –
    500   13 May 2016 3m Jibar + 1.34%   500   500
    500   15 Oct 2015 3m Jibar + 1.45%   500   500
    260   15 Sep 2016 3m Jibar + 1.50%   260   260
    500   11 Dec 2017 3m Jibar + 1.50%   500   500
    400   21 Feb 2024 3m Jibar + 1.90%   400   400
    499   24 Jun 2019 3m Jibar + 1.45%   499   499
    300   On demand Overnight + 1.07%   300   –
28.3 Fixed-rate loans – secured by investment property                
    2502   3 Apr 2018 10.27%   250   250
    4902   3 Apr 2018 10.38%   490   490
    740 2 492            
    675 1 795 1 Mar 2018 9.63%   675   675
    705 233 7 Apr 2020 9.90%   70   76
    2605 388 5 Aug 2023 12.68%   260   260
28.4 Australia                
                   
    2 396   31 Dec 2017 BBSW* + 1.90%   1 850   1 841
    2 396   31 Dec 2018 BBSW + 2.00%   1 850   1 841
    2 302   31 Dec 2019 BBSW + 1.80%   630   1 294
    658   31 Dec 2019 BBSW + 2.20%   –   –
    940   30 Jun 2019 BBSW + 1.80%   725   160
    –   30 Jun 2015 BBSW + 0.70%   –   722
    –   30 Apr 2016 BBSW + 2.20%   –   471
    1 879   15 Mar 2025 4.67%   1 451   –
    10 571 21 442            
28.5 Loans settled during the year                
    600   30 Nov 2014 1m Jibar + 1.53%   –   600
    650   30 Nov 2014 1m Jibar + 1.53%   –   –
    500   7 Jun 2015 3m Jibar + 1.55%   –   500
    500   29 Sep 2015 Prime – 1.85%   –   500
    500   31 Mar 2016 Prime – 2.00%   –   500
    740   31 Mar 2015 3m Jibar + 0.80%   –   740
    250   16 Sep 2014 3m Jibar + 1.41%   –   250
    400   4 Aug 2014 3m Jibar + 0.20%   –   400
    500   8 Dec 2014 3m Jibar + 1.56%   –   500
    750   25 Jan 2015 3m Jibar + 1.35%   –   750
    38   3 Dec 2018 9.86%   –   38
  Nominal value of long-term interest-bearing loans – carried forward           31 950   22 697
  * Jibar: Johannesburg Interbank Agreed Rate
  * BBSW: Bank Bill Swap Reference Rate

    2015
Rm		   2014
Rm		  
  Nominal value of long-term interest-bearing loans – brought forward 31 950   22 697  
  Foreign exchange loss – nominal value 1 861   2 348  
  Total nominal value of long-term interest-bearing loans 33 811   25 045  
  Fair value adjustments on long-term interest-bearing loans: 98   157  
  – loss 191   213  
  – profit (93)   (56)  
  Fair value adjustments on derivatives: 719   863  
  – interest rate swaps – loss 718   853  
  – foreign exchange contracts – loss 1   10  
  Foreign exchange loss – fair value adjustment on derivatives 57   69  
  Fair value of long-term interest-bearing loans and derivatives 34 685   26 134  
28.6 Less portion repayable within the next 12 months – at nominal value (5 930)   (4 543)  
28.7 Total non-current financial liabilities 28 755   21 591  
  – loans 27 979   20 659  
  – derivatives 776   932  
  1 Extension of three years has been agreed with the bank.
2 Security is shared by the three loans.
3 Extension of two years has been agreed with the bank.
4 Development facility has been negotiated which matures on 2 January 2018 and will immediately convert to a term loan with two repayment dates: 2 January 2022 and 2 January 2024. The capital is split equally between these repayment dates.
5 These loans have an amortising capital repayment profile.
6 106 828 139 Sycom Property Fund units with a market value of R3 717 million have been ceded and pledged as security for these loans.
  Interest cover ratio

Interest times cover — 3.4 (FY14: 3.3). Excluding Australia, the interest times cover remains at 3.4 (FY14: 3.5).

Loan to value ratio

Loan to value ratio for Growthpoint based on the nominal value of debt (net of cash), divided by the fair value of property assets, including investment property held for sale, equity-accounted investments and listed investments — 33.2% (FY14: 30.8%). Excluding Australia, the loan to value ratio decreases to 32.1% (FY14: 27.4%).
28.8 Measurement of fair value
    Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement
  Interest-bearing borrowings Valued by discounting future cash flows using the South African swap curve plus an appropriate credit margin at the dates when the cash flows will take place. Credit margins:
0.36% to 3.00%
(FY14: 0.21% to 3.00%)		 Estimated fair value would increase/(decrease) if the credit margin were lower/(higher)
  Derivative assets and liabilities: forward exchange contracts Valued by discounting the forward rates applied at year end to the open hedged positions. Not applicable Not applicable
  Derivative assets and liabilities: interest rate swaps Valued by discounting the future cash flows using the South African swap curve at the dates when the cash flows will take place. Not applicable Not applicable
  Derivative assets and liabilities: cross-currency interest rate swap Valued by discounting the future cash flows using the basis swap curve of the respective currencies at the dates when the cash flows will take place. Not applicable Not applicable
  Further information regarding the sensitivity is disclosed under note 45.5.