Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

9. Investment in bonds

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Investment in bonds at fair value through other comprehensive income

4 481 239

2 453 672

4 481 239

2 453 672

Investment in bonds Sovereign bonds

3 954 342

2 036 932

3 954 342

2 036 932

State-owned entity bonds

526 897 416 740 4 481 239 2 453 672 4 481 239 2 453 672 416 740 526 897

Reconciliation to the Statement of Cash Flows Opening balance

2 453 672

2 116 290

2 453 672

2 116 290

Expected credit (losses)/reversals

(17 855) 223 177

3 532

(17 855) 223 177

3 532

Fair value gains

35 927

35 927

Amortisation of net discounts

9 089

5 261

9 089

5 261

Acquisition of investments in bonds

1 813 156

292 662

1 813 156

292 662

Closing balance

4 481 239 2 453 672 4 481 239 2 453 672

As at 30 June 2025, the Group holds sovereign and state-owned entity bonds with a total nominal value of R4 620 million. Fair values were estimated using the Johannesburg Stock Exchange market rates. Coupons are payable quarterly and bi annually to the Group. During the current financial year, the Group acquired additional sovereign bonds and state-owned entity bonds with a total nominal value of R1 870 million. The Group has recognised net fair value gains of R223.2 million (2024: R35.9 million) in other comprehensive income with expected credit losses of R17.9 million (2024: R3.5 million reversal in the expected credit losses). As at 30 June 2025, the Group has amortised to the statement of financial performance R9.1 million (2024: R5.3 million) which relates to net discounts that were recognised at the initial purchase of the bonds.

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Rand Water | Integrated Annual Report 2025