11. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

11.1 Financial assets and financial liabilities at amortised cost

The carrying value of current receivables and liabilities measured at amortised cost approximates their fair value.

Listed long-term borrowings

The Group has listed long-term fixed interest rate senior unsecured notes in issue which were issued in prior years, with a carrying amount of R11 016 million at 30 June 2024 (30 June 2023: R18 032 million, 31 December 2023: R11 029 million) and a fair value of R10 879 million (30 June 2023: R17 536 million, 31 December 2023: R10 997 million). The notes are listed on the Irish bond market and the fair values of these instruments are determined by reference to quoted prices in this market. The market for these bonds is not considered to be liquid and consequently the fair value measurement is categorised within level 2 of the fair value hierarchy.

11.2 Financial instruments measured at fair value

IHS Group listed equity investment

The fair values of financial instruments measured at fair value are determined as follows:

Included in investments in the condensed consolidated statement of financial position is an equity investment in IHS Group at fair value of R4 971 million (30 June 2023: R15 667 million, 31 December 2023: R7 158 million). The fair value of the investment is determined by reference to published price quotations on the New York Stock Exchange. The share price of IHS Group was US$3.20 (30 June 2023: US$9.78, 31 December 2023: US$4.60) on the last trading day of the period. The fair value of this investment is categorised within level 1 of the fair value hierarchy.

A fair value decrease of R2 212 million (30 June 2023: R5 516 million increase, 31 December 2023: R2 689 million decrease) has been recognised. On 15 August 2024, the IHS Group share price was US$3.43 equating to an increase in the fair value of R289 million subsequent to 30 June 2024.

11.3 Capital management

Management regularly monitors and reviews covenant ratios. In terms of the banking facilities, the Group is required to comply with financial covenants. These financial covenants differ based on the contractual terms of each facility and incorporate both IFRS and non-IFRS financial measures. In the current year, MTN Guinea Bissau breached a loan covenant as a result of negative EBITDA performance. No formal waiver has been provided by lender, and as a result the full outstanding balance of R109 million has been classified as current and is disclosed as part of the non-current assets held for sale. The Group has complied with all other externally imposed loan covenants during the current financial year.