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SUN INTERNATIONAL ANNUAL REPORT ’10
166
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
for the year ended 30 June
17. LOANS AND RECEIVABLES
Preference share funding of empowerment partners 28 31
Loan to TCN – 144
Guarantee deposits 21 27
Other loans 7 31
56 233
Current portion (28) (184)
28 49
Derivative financial instruments
Foreign exchange contract (FEC) 7 –
Interest rate cross currency swaps – cash flow hedges (note 29) 13 –
20 –
Current portion
Foreign exchange contract (FEC) (1) –
Interest rate cross currency swaps – cash flow hedges (note 29) (2) –
2010
Rm
2009
Rm
17 –
45 49
Loans are due over the following periods:
Less than 1 year 31 184
1 – 2 years 10 15
2 – 3 years 17 3
3 – 4 years 2 17
4 years and onwards 16 14
76 233
The weighted average interest and dividend rates were as follows: % %
Preference share funding of empowerment partners* 7.5 8.3
Other loans 5.0 9.7
Loan to TCN – 0.0
Weighted average 7.0 2.4
* These rates are linked to the prime bank overdraft rate.
The preference share funding of empowerment partners and other loans are fully performing. Credit risk arising from the preference share
funding is regarded as low and the loans will be repaid through dividend flows.
The loan to TCN eliminates on consolidation from 26 May 2010.
The fair value of loans and receivables approximates their carrying value.