Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 112

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 112
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 2025. Covenants are reviewed annually
unless loan instalments are not met timeously. From the inception date to the date of this report, Purple Rain has not breached the Loan-to-Value
(“ LTV”) covenant of percentage and Minimum Debt Service Coverage Ratio (“ DSCR”) of 1.2x.

Term loan

In September 2024, Cartrack Portugal, S. A., secured a EUR
2.0 million loan from Banco Comercial Português, S. A. The loan bears an interest rate of 6-month Euribor rate plus 0.75%, with repayments
scheduled over a seven-year period. There are no covenants relating to this loan.

In June 2024, The Standard Bank
of South Africa Limited extended a loan of ZAR 250.0 million to Purple Rain Properties No.444 Proprietary Limited (the owner of the South
Africa Central Office) for funding the construction of the building. Interest levied by the bank is at a rate of prime less 1.5% and will
mature on December 21, 2025. No security has been provided for this loan arrangement. The financial conditions under the loan agreement
include the Loan to Value Ratio shall not exceed 60% from the period commencing on June 21, 2024 (the First Utilisation Date) until the
first anniversary of the First Utilisation Date and 55% during the next calendar period of 12 months. The Interest Coverage Ratio shall
not be less than 1.45 times for the period from the First Utilisation Date until the first anniversary of the First Utilisation Date and
1.71 times in the following period of 12 months. As at the date of this report, the financial conditions have been met.

Bank overdraft and overdraft
facility

In March 2020, Cartrack Proprietary Limited entered
into an unsecured short-term overdraft and other facilities with Capitec Bank Limited, previously Mercantile Bank (“ Capitec Bank”),
pursuant to a Short-Term Facility Letter, as amended and supplemented from time to time (the “ Overdraft Facility”). Pursuant
to the most recent Addendum to the Short-Term Facility Letter, dated April 18, 2024, the Overdraft Facility was increased to ZAR 300.0
million. Amounts due under the Overdraft Facility bear interest at Capitec Bank’s prime