NOTES TO F I NANC I AL STATEMENTS 10. CLASS C MEMBERS’ RETURNABLE CAPITAL The two Class C Members contributed Returnable Capital with a maximum fixed term of 20 years to the Company. These contributions were made on March 17, 2014 from KfW (USD 48,405,000) and FCDO (GBP 30,000,000) with a maturity date of March 17, 2034 under the CCA. The CCA provides that this Capital will be paid and returned in the afore-stated currencies and may be withdrawn early by the relevant Member, or returned early by the Company to such Member, in accordance with the relevant clause of the CCA and the Company’s Bye-Laws. The Class C Member Capital Commitment is returnable or may be withdrawn subject to the Company complying with its solvency margin, liquidity ratio, and all requirements of the Insurance Act and satisfying the obligations of the policyholders. The two Class C Members have equivalent interests in the Company, having both subscribed to one interest each, as per the CCA. Figures in USD FCDO GBP FCDO USD KFW USD TOTAL USD Initial fair value of capital commitment 30,000,000 49,929,600 48,405,000 98,334,600 Reserve fund – statutory capital requirement – (125,000) (125,000) (250,000) Impairment – – – – Total value of capital commitment – 49,804,600 48,280,000 98,084,600 Equity grant – (16,203,411) (15,704,823) (31,908,234) Accretion – 7,188,185 6,968,699 14,156,884 Net movement on equity grant – (9,015,226) (8,736,124) (17,751,350) Net value of loan – 40,789,374 39,543,876 80,333,250 Foreign exchange movement – (9,585,967) – (9,585,967) Fair value of loan December 31, 2023 – 31,203,407 39,543,876 70,747,283 Fair value of loan December 31, 2022 – 29,078,163 38,770,162 67,848,325 Net movement on loan for 2023 – 2,125,244 773,714 2,898,958 Net movement on equity grant – 9,015,226 8,736,124 17,751,350 Foreign exchange movement – (2,148,059) 3 (2,148,056) Fair value of equity grant December 31, 2023 – 6,867,167 8,736,127 15,603,294 Fair value of grant December 31, 2022 – 7,101,264 9,509,834 16,611,098 Net movement on grant for 2023 – (234,097) (773,707) (1,007,804) The foreign exchange amounts shown in the above table totaling $11,734,023 which is for the period March 17, 2014 to December 31, 2023 (March 17, 2014 to December 31, 2022: $13,625,173) are netted off against the foreign exchange movements for the current and prior periods on the GBP denominated marketable investments and cash and cash equivalents in the Statement of Income. This reflects that the initial GBP capital commitment is economically hedged for foreign exchange purposes with the GBP assets included in marketable investments and cash and cash equivalents. 109
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