Page 56 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

23. Borrowings
2020 2019
23.1. Cash and cash equivalents
$’000 $’000
Cash and bank balances 697 29
Total cash and cash equivalents 697 29

Cash and cash equivalents comprises cash net of outstanding bank overdrafts. Cash and cash equivalents at the end of the
reporting period as shown in the consolidated statement of cash flows can be reconciled to the related items in the consolidated
reporting position as shown above.

2020 2019
23.2. Borrowings
$’000 $’000
Secured borrowings at amortised cost:
Bank borrowings - MOCL 6,900 4,800
Bank loans 2,995 3,055
Total borrowings 9,895 7,855

All borrowings are due for settlement after 12 months.

2020 2019
23.3. Bank facilities
$’000 $’000
Secured bank overdraft facility- $3.0 million (2019: $3.0 million)
• amount drawn down at balance date 0 0
• amount unused at balance date 3,000 3,000

Multi Option Credit Line facility (MOCL) - $12.0 million (2019: $12.0 million)
• amount drawn down at balance date 6,900 4,800
• amount unused at balance date 5,100 7,200

Wholesale loan facility - $3.1 million (2019: $3.1 million)
• amount owing at balance date 2,995 3,055
• amount repaid at balance date 75 15
The Group has access to financing facilities as described above, of which $8.1 million were unused at the reporting date
(2019: $10.2 million).

Bank overdrafts
The bank overdraft facility may be drawn at any time, subject to the continuance of complying with external regulatory requirements,
and is repayable on demand. The overdraft facility is secured over the assets of NZPM Group Limited and subsidiaries by way of a
General Security Agreement (GSA). Cross guarantees exist between the various entities of the charging Group. The variable lending
rate (VLR) as at 31 March 2020 was 5.50% (2019: 5.85%) per annum. The bank overdraft rate is based on the VLR plus 1.40%.

Multi Option Credit Line Facility (MOCL)
The Multi Option Credit Line facility (MOCL) may be drawn at any time, subject to the continuance of complying with external
regulatory requirements. The expiry date is 31 December 2021. The MOCL is secured over the assets of NZPM Group Limited and
subsidiaries by way of a General Security Agreement (GSA). Interest was charged on the money market call advance account
throughout the year at an interest rate between 2.25% and 3.75% per annum; term advance loans throughout the year at an
interest rate between 3.39% and 3.61% (2019: 3.55% and 3.75%) per annum. The secured bank facility with Westpac New Zealand Ltd
(Westpac) imposes various undertakings on the Group and requires compliance with several bank financial covenants, see below. All
undertakings and covenants were met during the year.

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NZPM GROUP LIMITED ANNUAL REPORT 2020