NQABA FINANCE 1 (RF) LIMITED INVESTOR REPORT 23 AUGUST 2018 TO 22 NOVEMBER 2018 Debt Capital Markets Debt Capital Markets DCM Africa DCM Africa Kumeshen Naidoo Marcus Veller Tel: +27 11 895 6555 Tel: +27 11 895 7298 E-mail: kumeshen.naidoo@barclays.com E-mail: marcus.veller@absacapital.com Physical address: 15 Alice Lane, Sandown, Sandton 2196 South Africa Postal address: Private Bag X10056, Sandton 2146, South Africa NQABA FINANCE 1 (RF) LIMITED (Public company incorporated in the Republic of South Africa under number 2005/040050/06) Investor Report for the period ending 22 November 2018 Index Page Disclaimer 1 Counterparties and salient information 2 Assets: Collateral portfolio characteristics 3 Possessions 3 Related portfolio covenants 3 Related early amortisation event triggers 3 Portfolio stratification tables 4 Arrears analysis 7 Arrears reserve trigger 7 Early amortisation arrears trigger 7 Movement in properties classified as Litigations 7 Provisioning 7 Trends 8 Liabilities: Cumulative Note details 11 Note interest calculations 12 Interest swap calculations 12 Liquidity and redraw facilities 12 Early amortisation events (summary) 12 Principal deficiency ledger 13 Reserve funds 13 Cash flow statement 14 Priority of payments 14 Financial: Abridged statements of comprehensive income and financial position 15 Excess spread 15 Glossary Abridged glossary of definitions 16 Copies of Nqaba Investor Reports are available from the South African Securitisation Forum: http://www.sasf.co.za/investorreporting.htm Disclaimer: Copyright 2018. 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Absa Bank Limited, Registration Number 1986/004794/06, is an Authorised Financial Services Provider, Licence Number 292, and a Registered Credit Provider, Registration Number NCRCP7. 1 NQABA FINANCE 1 (RF) LIMITED Counterparties and salient information Issuer Nqaba Finance 1 (RF) Ltd (Nqaba) Financial year end: 31 March Issuer Owner Trust Nqaba Finance 1 Owner Trust (Trustee: Maitland Trustees (Pty) Ltd) Security SPV Nqaba Finance 1 Security SPV (Pty) Ltd Security SPV Owner Trust Nqaba Finance 1 Security SPV Owner Trust (Trustee: Maitland Trustees (Pty) Ltd) Programme manager Absa Corporate and Investment Bank (Absa CIB) (a division of Absa Bank Ltd (Absa)) ¹ Back-up servicer Absa Home Loans (a division of Absa) Rating agency Moody's Investors Service Inc Moody's ratings Originator and Seller Eskom Finance Company SOC Limited (EFC) ² Required Current Breach Borrowers' employer Eskom Holdings SOC Limited (Eskom) Baa3.za A2.za No Liquidity and redraw facility Absa CIB A1.za/P-2.za Aa1.za No provider Account bank Absa A1.za/P-2.za Aa1.za No Guaranteed Investment Contract Absa CIB A1.za/P-2.za Aa1.za No (GIC) provider Swap provider (Derivative Absa CIB A1.za/P-2.za Aa1.za No counterparty) ¹ Absa CIB is also the Lead Arranger, Dealer, Administrator, Calculation Agent and Debt Sponsor ² EFC is also the Servicer and Subordinated Lender Currency South African Rand (ZAR or R) Transaction type Traditional Securitisation (Revolving) Transaction close date Wednesday, May 31, 2006 Programme size R5,000,000,000 Outstanding Notes R 1 660 000 000 Note profile Interest only; bullet redemption Subordinated loan R 290 000 000 Interest payment dates 22nd day of February, May, August and November Business day convention Succeeding business day Day count Actual 365 Current interest accrual period 23 August 2018 to 21 November 2018 (92 days inclusive) Current interest payment date Thursday, November 22, 2018 Next interest payment date Friday, February 22, 2019 Asset class Residential Mortgage Backed Securities in an evergreen revolving structure Repayment type Fully amortising equal monthly interest and principal payments Current collection period 01 August 2018 to 31 October 2018 (92 days) Current determination date Wednesday, October 31, 2018 Transaction overview The collateral home loans comprise amortising loans originated by EFC to direct employees of Eskom and a limited number of loans to employees of other Eskom group companies. The loans are advanced to borrowers for the purchase of immovable residential property (including Sectional Title property) situated in South Africa, against the security of mortgage bonds registered over the properties in favour of the Home Loan Lender (initially the Seller, subsequently the Issuer). Most loan payments are subsidised by Eskom and are serviced through salary deductions. In the revolving period, qualifying home loans are purchased each month from EFC to top up the asset pool. Note that substitutions are not allowed in terms of South African securitisation legislation as the Issuer is not a Bank. NB: Please refer to the Transaction Documents, including the Applicable Pricing Supplements, for full details. 2 NQABA FINANCE 1 (RF) LIMITED Collateral portfolio characteristics Current period Previous period Transaction close Collection period: 01/08/2018 to 31/10/2018 01/05/2018 to 31/07/2018 31/05/2006 R Loans R Loans R Loans Balance brought forward 1,921,282,475 7,111 1,905,842,554 7,105 - - Instalments received (65,147,800) (64,787,447) Interest charged 46,112,693 46,220,016 Insurance charged 560,047 531,187 Valuation fees 89,914 158,380 Principal repaid (18,385,146) (17,877,863) Unscheduled repayments (prepayments) (50,768,917) (138) (49,791,691) (149) Total Principal collections (69,154,063) (67,669,555) - New loans purchased 43,776,312 86 60,494,430 155 1,370,652,558 8,382 Advances and redraws 17,627,420 22,685,436 Loan losses written off (346,723) (70,390) Loan losses recovered - - Interest adjustments - - Balance at end of period 1,913,185,421 7,059 1,921,282,475 7,111 1,370,652,558 8,382 Original value of loans advanced 2,285,473,170 2,258,124,916 Latest current valuations of properties 4,578,641,655 4,588,720,913 Weighted average number of months since last valuation 87 86 Indexed values of properties 8,195,654,000 8,325,668,000 Weighted average seasoning (months) 132 131 65 Weighted average term to maturity (months) 208 209 261 Largest asset value 4,192,678 4,192,678 N/A Since transaction close Months in the period 3 3 149 Loan book balance used as denominator for CPR and DR percentages below 1,921,282,475 1,905,842,554 1,921,282,475 Prepayments 50,768,917 49,791,691 2,031,526,802 Annualised constant prepayment rate (CPR) 10.6% 10.5% 8.5% Loan losses 346,723 70,390 7,146,861 Annualised default rate (DR) 0.072% 0.015% 0.030% Possessions Current period Previous period Collection period: 01/08/2018 to 31/10/2018 01/05/2018 to 31/07/2018 R Loans R Loans Possessions at start of period 432,000 2 432,000 2 Changes - - - - Possessions at end of period 432,000 2 432,000 2 Related portfolio covenants The Issuer may purchase additional home loans in terms of the home loan sale agreement if, immediately following such acquisition on the relevant transfer date, the following portfolio covenants are satisfied: Current period Previous period Transaction close Collection period: 01/08/2018 to 31/10/2018 01/05/2018 to 31/07/2018 31/05/2006 Required Actual Required Actual Required Actual Weighted average Original Loan to Value (%) =< 91.0 89.5 =< 91.0 89.4 =< 93.6 92.5 Weighted average Current Loan to Value (%) =< 73.0 66.8 =< 73.0 66.9 =< 76.5 75.9 Weighted average Payment to Income (%) =< 18.0 11.6 =< 18.0 12.2 =< 17.4 16.5 Minimum payroll deduction (number) (%) => 92.0 93.4 =< 92.0 93.5 =< 97.0 100.0 Maximum second property loans (number) (%) ¹ =< 8.5 2.5 =< 8.5 2.5 =< 7.5 1.5 Minimum direct Eskom employees (number) (%) => 86.0 91.2 => 86.0 91.4 => 85.0 100.0 Average outstanding balance =< R 300 000 R 271 028 =< R 300 000 R 270 185 =< R300 000 R 163,523 ¹ Includes second property loans in EFC loanbook Result: No portfolio covenants have been breached; issuer may purchase additional home loans Related early amortisation events 1. If the Required Interest Margin on both tests on interest payment date as determined below, is not achieved: Current period Previous period Transaction close Collection period: 01/08/2018 to 31/10/2018 01/05/2018 to 31/07/2018 31/05/2006 Required Actual Required Actual Required Actual 12 month rolling average rates: Weighted average home loan rate 9.62% 9.67% 3 month Jibar daily rate 7.00% 7.00% Margin => 2.15% 2.62% => 2.15% 2.67% And Current actual rates at interest payment date: Weighted average home loan rate 9.52% 9.52% 9.64% 3 month Jibar rate 7.02% 6.90% 7.70% Margin => 2.15% 2.51% => 2.15% 2.62% => 1.8% 1.94% 2. If the weighted average current Loan to Value ratio exceeds the required weighted average Current Loan to Value ratio by more than 10%: Current period Previous period Collection period: 01/08/2018 to 31/10/2018 01/05/2018 to 31/07/2018 Required Actual Required Actual Weighted average Current Loan to Value (%) =< 83.0 66.8 =< 83.0 66.9 Result: No early amortisation events have occurred 3 NQABA FINANCE 1 (RF) LIMITED Portfolio stratification tables at determination date 31/10/2018 Red figures correspond to current portfolio covenant tests Weighted Weighted Weighted Weighted average average Weighted average Latest current average Indexed indexed interest average term to Current balance Number of loans valuation current LTV valuation LTV rate seasoning maturity R % R % R % R % % Months Months Original Loan to Value 0% - 30% 35,181,513 1.8% 202 2.9% 177,186,401 40.3% 282,317,000 31.9% 9.7% 184 141 30% - 50% 66,477,615 3.5% 319 4.5% 296,407,000 44.1% 501,537,000 36.6% 9.6% 175 162 50% - 70% 164,183,205 8.6% 621 8.8% 524,999,978 50.6% 865,182,000 40.8% 9.4% 130 184 70% - 80% 180,259,568 9.4% 524 7.4% 442,546,622 59.8% 762,707,000 48.2% 9.4% 114 210 80% - 90% 296,131,199 15.5% 751 10.6% 585,062,809 71.8% 1,004,782,000 59.0% 9.4% 97 235 90% - 100% 508,220,738 26.6% 2,159 30.6% 1,273,431,742 66.6% 2,570,066,000 49.3% 9.5% 137 205 100%+ 662,731,584 34.6% 2,483 35.2% 1,279,007,103 74.4% 2,209,063,000 55.2% 9.7% 141 212 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Weighted average 89.5% Current Loan to Value 0% - 30% 209,740,380 11.0% 3,117 44.2% 1,995,404,229 19.1% 4,439,701,000 13.3% 9.5% 212 109 30% - 50% 274,683,266 14.4% 987 14.0% 687,287,419 40.8% 1,073,735,000 29.7% 9.4% 171 158 50% - 70% 452,808,049 23.7% 1,036 14.7% 745,297,737 61.3% 1,105,689,000 45.6% 9.4% 138 199 70% - 80% 332,983,544 17.4% 626 8.9% 443,948,629 75.1% 617,560,000 58.0% 9.3% 105 237 80% - 90% 360,078,803 18.8% 696 9.9% 423,283,470 85.2% 591,365,000 64.3% 9.5% 94 251 90% - 100% 212,439,063 11.1% 484 6.9% 226,173,172 94.0% 307,503,000 70.7% 9.7% 93 263 100%+ 70,452,315 3.7% 113 1.6% 57,247,000 131.1% 60,101,000 127.7% 11.5% 128 234 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Payment to income ratio 0% - 5% 297,838,987 15.6% 3,124 44.3% 1,707,963,758 48.1% 4,139,775,000 29.7% 9.0% 173 181 5% - 10% 580,227,611 30.3% 1,934 27.4% 1,265,869,223 60.9% 1,924,782,000 44.3% 9.3% 148 196 10% - 15% 526,809,534 27.5% 1,157 16.4% 869,290,044 71.5% 1,164,548,000 55.7% 9.6% 119 218 15% - 20% 309,511,525 16.2% 535 7.6% 465,772,426 76.9% 644,047,000 62.3% 9.8% 105 223 20% - 25% 133,690,025 7.0% 208 2.9% 183,051,621 81.1% 224,979,000 70.0% 10.0% 88 244 25% - 30% 40,825,412 2.1% 60 0.8% 59,845,584 76.5% 69,606,000 68.1% 10.3% 97 222 30%+ 24,282,328 1.3% 41 0.6% 26,849,000 114.3% 27,917,000 112.6% 11.5% 154 203 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Weighted average 11.6% 4 NQABA FINANCE 1 (RF) LIMITED Portfolio stratification tables at determination date 31/10/2018 Red figures correspond to current portfolio covenant tests Weighted Weighted Weighted Weighted average average Weighted average Latest current average Indexed indexed interest average term to Current balance Number of loans valuation current LTV valuation LTV rate seasoning maturity R % R % R % R % % Months Months Payment method Payroll Deduction 1,757,362,113 91.9% 6,590 93.4% 4,294,566,052 64.9% 7,821,977,000 48.4% 9.4% 129 209 Other 155,823,308 8.1% 469 6.6% 284,075,603 88.3% 373,677,000 83.1% 11.5% 156 195 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Borrower employment status Direct Eskom 1,704,754,340 89.1% 6,436 91.2% 4,190,576,024 64.7% 7,636,602,000 48.3% 9.3% 130 208 Other group co. 208,431,081 10.9% 623 8.8% 388,065,630 83.9% 559,052,000 75.8% 11.0% 143 205 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Loan balance (R'000) 0 - 100 84,727,464 4.4% 2,707 38.3% 1,287,849,788 22.0% 3,360,810,000 11.3% 9.6% 231 88 100 -200 149,860,991 7.8% 1,015 14.4% 546,081,182 40.7% 989,668,000 24.2% 9.6% 199 136 200 - 300 199,892,347 10.4% 797 11.3% 449,188,610 56.9% 719,617,000 38.3% 9.6% 157 183 300 - 400 253,574,447 13.3% 726 10.3% 462,468,285 66.6% 668,640,000 48.2% 9.6% 134 209 400 -500 246,716,451 12.9% 553 7.8% 385,994,451 73.1% 548,992,000 54.2% 9.6% 122 225 500 - 700 421,755,840 22.0% 717 10.2% 636,144,359 73.9% 844,451,000 58.4% 9.6% 118 229 700 - 1000 288,618,435 15.1% 351 5.0% 421,505,117 76.5% 555,398,000 63.2% 9.5% 108 236 1000 - 1500 179,683,551 9.4% 147 2.1% 255,787,201 75.0% 315,997,000 63.3% 9.2% 90 234 1500+ 88,355,896 4.6% 46 0.7% 133,622,663 77.3% 192,081,000 67.7% 9.3% 112 213 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Average balance 271,028 Interest rate 0% - 8% 3,610,416 0.2% 10 0.1% 3,491,500 114.6% 3,501,000 114.4% 0.0% 161 140 8% - 9.5% 668,711,631 35.0% 1,722 24.4% 1,719,077,790 61.2% 3,019,105,000 45.8% 8.7% 134 198 9.5% -11.5% 1,161,730,985 60.7% 5,164 73.2% 2,753,616,365 67.3% 5,061,392,000 50.7% 9.8% 128 214 11.5% -13.5% 79,132,389 4.1% 163 2.3% 102,456,000 105.0% 111,656,000 102.5% 12.9% 159 203 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 5 NQABA FINANCE 1 (RF) LIMITED Portfolio stratification tables at determination date 31/10/2018 Red figures correspond to current portfolio covenant tests Weighted Weighted Weighted Weighted average average Weighted average Latest current average Indexed indexed interest average term to Current balance Number of loans valuation current LTV valuation LTV rate seasoning maturity R % R % R % R % % Months Months Seasoning 0 - 12 months 19,854,019 1.0% 34 0.5% 40,006,000 72.3% 40,006,000 72.3% 9.2% 9 249 12 - 24 months 39,495,944 2.1% 64 0.9% 68,994,000 73.8% 68,989,000 73.8% 9.4% 19 281 24 - 36 months 53,135,631 2.8% 79 1.1% 88,739,500 72.3% 90,790,000 70.7% 9.4% 30 283 36 - 48 months 52,529,215 2.7% 84 1.2% 91,533,900 74.6% 99,922,000 68.0% 9.5% 43 268 48 - 60 months 59,836,491 3.1% 96 1.4% 106,552,750 73.2% 126,759,000 62.2% 9.3% 55 258 60 - 120 months 846,690,740 44.3% 1,883 26.7% 1,348,386,565 77.3% 1,817,695,000 58.8% 9.6% 92 238 120+ months 841,643,381 44.0% 4,819 68.3% 2,834,428,940 54.6% 5,951,493,000 39.1% 9.5% 197 161 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Region Eastern Cape 98,048,823 5.1% 339 4.8% 233,585,540 71.7% 341,458,000 56.2% 9.8% 143 202 Free State 92,381,678 4.8% 379 5.4% 210,316,102 68.0% 338,209,000 51.6% 9.6% 126 215 Gauteng 792,436,805 41.4% 2,355 33.4% 1,831,684,377 65.3% 3,023,545,000 50.5% 9.4% 128 209 Kwazulu Natal 109,822,801 5.7% 473 6.7% 289,625,550 67.6% 541,893,000 52.0% 9.7% 145 201 Limpopo Province 71,648,411 3.7% 318 4.5% 170,424,387 64.8% 273,389,000 47.9% 9.7% 134 206 Mpumalanga 420,382,837 22.0% 1,884 26.7% 978,815,795 67.2% 1,888,932,000 51.4% 9.6% 133 207 North West 38,282,910 2.0% 180 2.5% 74,392,162 71.9% 160,648,000 51.0% 9.5% 135 203 Northern Cape 25,644,515 1.3% 155 2.2% 71,422,893 67.4% 116,215,000 50.2% 9.8% 133 206 Western Cape 264,536,641 13.8% 976 13.8% 718,374,848 67.9% 1,511,365,000 52.2% 9.6% 132 211 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 Property type House (Freehold) 1,562,135,128 81.7% 5,988 84.8% 3,840,396,535 65.7% 6,974,506,000 50.2% 9.5% 137 203 Multi-unit (Sectional Title) 274,344,081 14.3% 877 12.4% 493,166,173 75.4% 841,923,000 57.9% 9.5% 107 238 House (Complex) 7,884,170 0.4% 19 0.3% 15,905,000 61.2% 25,014,000 43.5% 9.5% 138 201 Small Holding 3,956,089 0.2% 14 0.2% 11,245,000 50.8% 17,554,000 34.7% 9.7% 126 174 Other 64,865,952 3.4% 161 2.3% 217,928,947 58.7% 336,657,000 49.5% 9.2% 104 215 Total 1,913,185,421 100.0% 7,059 100.0% 4,578,641,655 66.8% 8,195,654,000 51.3% 9.5% 132 208 6 NQABA FINANCE 1 (RF) LIMITED Arrears analysis at determination date Wednesday, October 31, 2018 WA interest Tuesday, July 31, 2018 WA Loan balances Number of loans rate Loan balances Number of loans interest R % % % R % % % Fully performing Current 1,816,286,404 94.9% 6,785 96.1% 9.4% 1,823,241,379 94.9% 6,834 96.1% 9.4% Non-delinquent 0 - 1 months 10,551,296 0.6% 34 0.5% 11.7% 14,550,741 0.8% 39 0.5% 11.4% 1 - 2 months 7,100,595 0.4% 24 0.3% 12.1% 7,042,527 0.4% 24 0.3% 11.9% 2 - 3 months 7,324,605 0.4% 22 0.3% 12.1% 8,653,077 0.5% 21 0.3% 12.4% Total 24,976,495 1.3% 80 1.1% 11.9% 30,246,345 1.6% 84 1.2% 11.8% Deteriorated 3 - 4 months - 0.0% - 0.0% 0.0% - 0.0% - 0.0% 0.0% 4 - 5 months 150,656 0.0% 2 0.0% 12.7% 1,028,804 0.1% 6 0.1% 11.8% 5 - 6 months 101,753 0.0% 1 0.0% 12.5% 1,333,987 0.1% 3 0.0% 12.6% 6 - 12 months 1,805,837 0.1% 7 0.1% 12.6% 2,086,178 0.1% 9 0.1% 12.7% >12 months 3,524,428 0.2% 23 0.3% 7.3% 2,775,652 0.1% 24 0.3% 5.9% Total 5,582,675 0.3% 33 0.5% 9.3% 7,224,620 0.4% 42 0.6% 9.9% Defaulted Litigation 30,207,483 1.6% 53 0.8% 12.5% 28,338,249 1.5% 48 0.7% 12.5% Other categories Debt review - 0.0% - 0.0% 0.0% - 0.0% - 0.0% 0.0% Arrangement 34,259,984 1.8% 102 1.4% 12.6% 29,543,021 1.5% 96 1.4% 12.6% Third party attachment - 0.0% - 0.0% 0.0% - 0.0% - 0.0% 0.0% Properties sold 1,440,381 0.1% 4 0.1% 0.0% 2,256,861 0.1% 5 0.1% 0.0% Properties in possession 432,000 0.0% 2 0.0% 0.0% 432,000 0.0% 2 0.0% 0.0% Total 36,132,364 1.9% 108 1.5% 11.9% 32,231,882 1.7% 103 1.4% 11.5% Total 1,913,185,421 100.0% 7,059 100.0% 9.5% 1,921,282,475 100.0% 7,111 100.0% 9.5% Arrears reserve trigger An arrears reserve trigger event shall occur on any determination date where the aggregate principal balances of home loans (i) which are in arrears for more than 3 months; and/or (ii) in respect of which the Issuer has instituted legal proceedings for the recovery of amounts owing, exceeds 2,5% of the aggregate principal balances of the home loans and shall cease when such percentage reduces to 1,5%; 10/31/2018 7/31/2018 R R Aggregate principal balances on home loans as above A 1,913,185,421 1,921,282,475 Balances which are in arrears for more than 3 months B 5,582,675 7,224,620 Balances for which the Issuer has instituted legal proceedings C 30,207,483 28,338,249 Total arrears for calculation purposes D=B+C 35,790,158 35,562,869 Arrears % E=D/A 1.87% 1.85% Arrears reserve trigger level percentage 2.00% 2.00% Arrears reserve trigger level value 38,263,708 38,425,650 If arrears % (E) previously exceeded the trigger, check whether arrears have decreased to 1.5% No No Arrears trigger event maintained Yes Yes If Yes, calculation of arrears reserve required: Original valuation of the related properties 6,213,302 7,136,768 Latest valuation of the related properties 12,996,500 15,397,500 Balances which are in arrears for more than 3 months B 5,582,675 7,224,620 60% of the lower of the original valuation and latest valuation F 3,727,981 4,282,061 Test difference between arrears and conservative value of related properties G=B-F 1,854,694 2,942,559 Arrears reserve required amount (if value greater, no cash reserve required) H 1,854,694 2,942,559 Quarter 10/31/2018 9/30/2018 8/31/2018 Changes in arrears reserve R R R R Opening balance 2,942,559 3,222,539 2,823,823 2,942,559 Changes reflected in Priority of Payments (1,087,865) (1,367,845) 398,716 (118,736) Closing balance H 1,854,694 1,854,694 3,222,539 2,823,823 Related early amortisation arrears trigger 10/31/2018 7/31/2018 R R Notes in issue 1,660,000,000 1,660,000,000 Trigger per cent 2.50% 2.50% Trigger value I 41,500,000 41,500,000 Total arrears as defined above D 35,790,158 35,562,869 Headroom (deficit) 5,709,842 5,937,131 Early amortisation arrears trigger event (D > I) No No Movement in properties clasified as Litigations 10/31/2018 7/31/2018 No of loans R No of loans R Opening balance 48 28,338,249 47 27,752,058 Loans exit litigation -8 (4,212,277) -13 (6,497,816) Loans enter litigation 13 4,970,567 14 5,943,241 Repayments (17,000) - Advance 164,920 200,455 Interest 902,760 867,504 Loan losses - - Valuation fees 5,425 19,608 Capitalised insurance 54,840 53,198 Closing balance 53 30,207,483 48 28,338,249 Provisions Nqaba establishes an allowance for impairment of the loan book that represents its estimate of incurred losses. This allowance consists of a specific loss component that relates to individual exposure and a collective loss component in respect of losses that have been incurred but not yet identified. The provisions are not taken into account in the tables above. The amounts shown in the company's Management Reports are: 10/31/2018 7/31/2018 R R Impairments applied to loan book excluding possessions 9,489,386 9,044,732 Impairments applied to possessions 322,000 322,000 Total impairments 9,811,386 9,366,732 7 NQABA FINANCE 1 (RF) LIMITED Trends Arrears analysis (values in R million) End of: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Pool 1920 1923 1926 1924 1917 1906 1922 1922 1921 1917 1913 1913 Trigger 1 (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Trigger 1 38.39 38.45 38.52 38.47 38.34 38.12 38.44 38.44 38.43 38.34 38.25 38.26 =>3 Months 7.14 7.68 8.60 8.14 10.04 7.82 8.82 6.30 7.22 7.16 7.07 5.58 Litigations 26.43 27.21 23.60 23.82 23.98 27.75 26.26 29.34 28.34 28.65 28.41 30.21 Combined 33.57 34.88 32.20 31.96 34.02 35.57 35.08 35.64 35.56 35.82 35.48 35.79 Notes 1660 1660 1660 1660 1660 1660 1660 1660 1660 1660 1660 1660 Trigger 2 (%) 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Trigger 2 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 41.50 Trigger 2 diff 7.93 6.62 9.30 9.54 7.48 5.93 6.42 5.86 5.94 5.68 6.02 5.71 Trigger 1 (2% of principal balances) = If breached by combined arrears, an arrears reserve is required until arrears decrease to 1.5% Trigger 2 (2.5% of Notes) = If breached by combined arrears, early amortisation is required Arrears (R mil) Pool (R mil) 45 1950 40 1930 35 30 1910 25 1890 20 15 1870 10 1850 5 0 1830 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Combined Pool =>3 Months Litigations Trigger 1 Trigger 2 Arrears analysis (percentages) End of: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Pool (R mil) 1920 1923 1926 1924 1917 1906 1922 1922 1921 1917 1913 1913 =>3 Mths 0.37% 0.40% 0.45% 0.42% 0.52% 0.41% 0.46% 0.33% 0.38% 0.37% 0.37% 0.29% Litigations 1.38% 1.42% 1.23% 1.24% 1.25% 1.46% 1.37% 1.53% 1.47% 1.49% 1.49% 1.58% Combined 1.75% 1.81% 1.67% 1.66% 1.77% 1.87% 1.83% 1.85% 1.85% 1.87% 1.86% 1.87% Trigger 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Trigger (combined arrears) = If breached, an arrears reserve is required until arrears decrease to 1.5% The noteholders agreed to increase both triggers, effective 1 May 2017, hence the difference in trigger percentage from May 2017 onwards Arrears (% of Pool) Pool (R mil) 1950 2.00% 1930 1.50% 1910 1.00% 1890 1870 0.50% 1850 0.00% 1830 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Combined Pool (R mil) =>3 Mths Litigations Trigger 8 NQABA FINANCE 1 (RF) LIMITED Trends Payroll Deduction Percentage (number of borrowers) End of: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Actual 93.7% 93.5% 93.4% 93.4% 93.5% 93.5% 93.5% 93.5% 93.5% 93.5% 93.5% 93.4% Trigger (min.) 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% 92.0% Trigger = If breached, purchase of additional home loans prohibited 94.0% 93.5% 93.0% 92.5% 92.0% 91.5% Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Actual Trigger (min.) Interest rate margin The Required Interest Rate margin between the weighted average home loan rate and the 3 month JIBAR rate is to be tested in two ways on Interest Payment date: the margin of the 12 months rolling averages of each rate and the margin of the actual rates applicable on those dates. For trend purposes, the rates are shown below at each month end with the current JIBAR rate as determined on each reset date for the quarter. The same trigger margin applies to both calculations. End of: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 12 months rolling average: HL-12 m 9.95% 9.92% 9.90% 9.87% 9.84% 9.80% 9.76% 9.71% 9.67% 9.65% 9.63% 9.62% Jibar-12 m 7.23% 7.22% 7.17% 7.15% 7.13% 7.10% 7.06% 7.03% 7.00% 7.00% 7.00% 7.00% Margin-12 m 2.72% 2.71% 2.73% 2.72% 2.71% 2.70% 2.69% 2.68% 2.67% 2.65% 2.64% 2.62% Current month: HL-current 9.74% 9.75% 9.75% 9.75% 9.76% 9.51% 9.51% 9.51% 9.52% 9.53% 9.53% 9.52% Jibar-curr. 7.05% 7.10% 7.10% 7.13% 7.13% 7.13% 6.90% 6.90% 6.90% 7.02% 7.02% 7.02% Margin-curr. 2.69% 2.65% 2.65% 2.63% 2.64% 2.39% 2.61% 2.61% 2.62% 2.51% 2.51% 2.51% Trigger (min.) 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% 2.15% Trigger = If breached by both calculations on the same interest payment date, early amortisation required 3.00% 2.75% 2.50% 2.25% 2.00% Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Margin-12 m Margin-curr. Trigger (min.) Notes maturity analysis 9 NQABA FINANCE 1 (RF) LIMITED Trends Asset pool maturity analysis 10 NQABA FINANCE 1 (RF) LIMITED Cumulative Note details to Interest payment date 22/11/2018 10/31/2018 Remaining Tranches life on JSE Scheduled Legal final redeemed on Tranche Original scheduled Class stock maturity and maturity Tranche balance at Subsequent scheduled balance at end rating at Current rating maturity number code ISIN Issue date step-up date date transaction close tranches issued maturity dates of period issue date (31/05/2016) (years) Weighted R R R R A1 NQF1A1 ZAG000030701 31/05/2006 22/05/2009 22/05/2041 696,000,000 (696,000,000) - AAA(zaf) A2 NQF1A2 ZAG000030735 31/05/2006 22/05/2011 22/05/2043 376,000,000 (376,000,000) - AAA(zaf) A3 NQF1A3 ZAG000030685 31/05/2006 22/05/2011 22/05/2043 320,000,000 (320,000,000) - AAA(zaf) A4 NQF1A4 ZAG000044520 28/09/2007 22/05/2010 22/05/2042 304,000,000 (304,000,000) - AAA(zaf) A5 NQF1A5 ZAG000067760 22/05/2009 22/05/2010 22/05/2042 696,000,000 (696,000,000) - AAA(zaf) A6 NQF1A6 ZAG000077546 24/05/2010 22/05/2011 22/05/2043 100,000,000 (100,000,000) - AAA(zaf) A7 NQF1A7 ZAG000077553 24/05/2010 22/11/2011 22/11/2043 375,000,000 (375,000,000) - AAA(zaf) A8 NQF1A8 ZAG000077561 24/05/2010 22/05/2012 22/05/2044 30,000,000 (30,000,000) - AAA(zaf) A9 NQF1A9 ZAG000077579 24/05/2010 22/05/2013 22/05/2045 127,000,000 (127,000,000) - AAA(zaf) A10 NQ1A10 ZAG000077686 24/05/2010 22/05/2020 22/05/2052 115,000,000 115,000,000 AAA(zaf) A1(sf) / Aaa.za(sf) 1.56 0.11 A11 NQ1A11 ZAG000085853 23/05/2011 22/05/2016 22/05/2048 205,000,000 (205,000,000) - AAA(zaf) A12 NQ1A12 ZAG000085879 23/05/2011 22/05/2014 22/05/2046 318,000,000 (318,000,000) - AAA(zaf) A13 NQ1A13 ZAG000085887 23/05/2011 22/05/2012 22/05/2044 273,000,000 (273,000,000) - AAA(zaf) A14 NQ1A14 ZAG000090648 22/11/2011 22/05/2013 22/05/2045 375,000,000 (375,000,000) - AAA(zaf) A15 NQ1A15 ZAG000095258 22/05/2012 22/05/2015 22/05/2047 303,000,000 (303,000,000) - AAA(zaf) A16 NQ1A16 ZAG000105933 22/05/2013 22/05/2016 22/05/2048 200,000,000 (200,000,000) - AAA(zaf) A18 NQ1A18 ZAG000115569 22/05/2014 22/05/2017 22/05/2049 318,000,000 (318,000,000) - AAA(zaf) A19 NQ1A19 ZAG000126509 22/05/2015 22/05/2018 22/05/2050 303,000,000 (303,000,000) - AAA(zaf) A21 NQ1A21 ZAG000136664 23/05/2016 22/05/2019 22/05/2051 210,000,000 210,000,000 AAA(zaf) A1(sf) / Aaa.za(sf) 0.56 0.07 A22 NQ1A22 ZAG000136722 22/05/2015 22/05/2017 22/05/2049 195,000,000 (195,000,000) - AAA(zaf) A23 NQ1A23 ZAG000143983 22/05/2017 22/05/2018 22/05/2050 5,000,000 (5,000,000) - AAA(zaf) A24 NQ1A24 ZAG000143991 22/05/2017 22/05/2020 22/05/2052 310,000,000 310,000,000 AAA(zaf) Aaa.za(sf) 1.56 0.29 A25 NQ1A25 ZAG000144007 22/05/2017 22/05/2022 22/05/2054 150,000,000 150,000,000 AAA(zaf) Aaa.za(sf) 3.56 0.32 A26 NQ1A26 ZAG000144155 22/05/2017 22/05/2018 22/05/2050 48,000,000 (48,000,000) - AAA(zaf) Aaa.za(sf) A27 NQ1A27 ZAG000151531 22/05/2018 22/05/2023 22/05/2055 658,000,000 658,000,000 AAA(zaf) Aaa.za(sf) 4.56 1.81 Totals Class A 1,392,000,000 5,618,000,000 (5,567,000,000) 1,443,000,000 B1 NQF1B1 ZAG000030719 31/05/2006 22/05/2009 22/05/2041 32,000,000 (32,000,000) - AA(zaf) B2 NQF1B2 ZAG000030743 31/05/2006 22/05/2011 22/05/2043 32,000,000 (32,000,000) - AA(zaf) B3 NQF1B3 ZAG000044538 28/09/2007 22/05/2010 22/05/2042 14,000,000 (14,000,000) - AA(zaf) B5 NQF1B5 ZAG000067778 22/05/2009 22/05/2010 22/05/2042 32,000,000 (32,000,000) - AA(zaf) B6 NQF1B6 ZAG000077587 24/05/2010 22/05/2011 22/05/2043 8,000,000 (8,000,000) - AA(zaf) B7 NQF1B7 ZAG000077595 24/05/2010 22/11/2011 22/11/2043 10,000,000 (10,000,000) - AA(zaf) B9 NQF1B9 ZAG000077611 24/05/2010 22/05/2013 22/05/2045 30,000,000 (30,000,000) - AA(zaf) B10 NQ1B10 ZAG000077702 24/05/2010 22/05/2020 22/05/2052 11,000,000 11,000,000 AA(zaf) A3(sf) / Aaa.za(sf) 1.56 0.01 B11 NQ1B11 ZAG000085861 23/05/2011 22/05/2014 22/05/2046 32,000,000 (32,000,000) - AA(zaf) B12 NQ1B12 ZAG000085895 23/05/2011 22/05/2012 22/05/2044 8,000,000 (8,000,000) - AA(zaf) B13 NQ1B13 ZAG000090655 22/11/2011 22/05/2013 22/05/2045 10,000,000 (10,000,000) - AA(zaf) B14 NQ1B14 ZAG000095266 22/05/2012 22/05/2015 22/05/2047 8,000,000 (8,000,000) - AA(zaf) B15 NQ1B15 ZAG000105966 22/05/2013 22/05/2018 22/05/2050 40,000,000 (40,000,000) - AA(zaf) A3(sf) / Aaa.za(sf) B16 NQ1B16 ZAG000115577 22/05/2014 22/05/2017 22/05/2049 32,000,000 (32,000,000) - AA(zaf) B17 NQ1B17 ZAG000126467 22/05/2015 22/05/2020 22/05/2050 8,000,000 8,000,000 AA(zaf) A3(sf) / Aaa.za(sf) 1.56 0.01 B19 NQ1B19 Private placement 22/05/2017 22/05/2018 22/05/2050 32,000,000 (32,000,000) - AAA(zaf) Aaa.za(sf) B20 NQ1B20 ZAG000151549 22/05/2018 22/05/2023 22/05/2055 159,000,000 159,000,000 AAA(zaf) Aaa.za(sf) 4.56 0.44 Totals Class B 64,000,000 434,000,000 (320,000,000) 178,000,000 C1 NQF1C1 ZAG000030693 31/05/2006 22/05/2009 22/05/2041 32,000,000 (32,000,000) - A(zaf) C2 NQF1C2 ZAG000030727 31/05/2006 22/05/2011 22/05/2043 32,000,000 (32,000,000) - A(zaf) C3 NQF1C3 ZAG000044546 28/09/2007 22/05/2010 22/05/2042 14,000,000 (14,000,000) - A(zaf) C5 NQF1C5 ZAG000067778 22/05/2009 22/05/2010 22/05/2042 32,000,000 (32,000,000) - A(zaf) C6 NQF1C6 ZAG000077629 24/05/2010 22/05/2011 22/05/2043 5,000,000 (5,000,000) - A(zaf) C7 NQF1C7 ZAG000077637 24/05/2010 22/11/2011 22/11/2043 13,000,000 (13,000,000) - A(zaf) C9 NQF1C9 ZAG000077652 24/05/2010 22/05/2013 22/05/2045 12,000,000 (12,000,000) - A(zaf) C10 NQ1C10 ZAG000077694 24/05/2010 22/05/2020 22/05/2052 5,000,000 5,000,000 A(zaf) Baa1(sf) / Aaa.za(sf) 1.56 0.00 C11 NQ1C11 ZAG000085903 23/05/2011 22/05/2014 22/05/2046 32,000,000 (32,000,000) - A(zaf) C12 NQ1C12 ZAG000085911 23/05/2011 22/05/2012 22/05/2044 5,000,000 (5,000,000) - A(zaf) C13 NQ1C13 ZAG000090630 22/11/2011 22/05/2013 22/05/2045 13,000,000 (13,000,000) - A(zaf) C14 NQ1C14 ZAG000095241 22/05/2012 22/05/2015 22/05/2047 5,000,000 (5,000,000) - A+(zaf) C15 NQ1C15 ZAG000105958 22/05/2013 22/05/2018 22/05/2050 25,000,000 (25,000,000) - A+(zaf) Baa1(sf) / Aaa.za(sf) C16 NQ1C16 ZAG000115585 22/05/2014 22/05/2017 22/05/2049 32,000,000 (32,000,000) - A+(zaf) - C17 NQ1C17 ZAG000126459 22/05/2015 22/05/2020 22/05/2050 5,000,000 5,000,000 A+(zaf) Baa1(sf) / Aaa.za(sf) 1.56 0.00 C19 NQ1C19 Private placement 22/05/2017 22/05/2018 22/05/2050 32,000,000 (32,000,000) - AAA(zaf) Aaa.za(sf) Totals Class C 64,000,000 230,000,000 (284,000,000) 10,000,000 D1 NQF1D1 ZAG000030750 31/05/2006 22/05/2009 22/05/2041 24,000,000 (24,000,000) - BBB(zaf) D2 NQF1D2 ZAG000030677 31/05/2006 22/05/2011 22/05/2043 24,000,000 (24,000,000) - BBB(zaf) D3 NQF1D3 ZAG000044553 28/09/2007 22/05/2010 22/05/2042 11,000,000 (11,000,000) - BBB(zaf) D4 NQF1D4 ZAG000077660 24/05/2010 22/05/2013 22/05/2045 30,000,000 (30,000,000) - BBB(zaf) D5 NQF1D5 ZAG000077678 24/05/2010 22/05/2020 22/05/2052 5,000,000 5,000,000 BBB(zaf) Baa2(sf) / Aa1.za(sf) 1.56 0.00 D6 NQF1D6 ZAG000085929 23/05/2011 22/05/2016 22/05/2048 24,000,000 (24,000,000) - BBB(zaf) D7 NQF1D7 ZAG000105974 22/05/2013 22/05/2018 22/05/2050 30,000,000 (30,000,000) - A-(zaf) Baa2(sf) / Aa1.za(sf) D8 NQF1D8 ZAG000136656 23/05/2016 22/05/2019 22/05/2051 24,000,000 24,000,000 A-(zaf) Baa2(sf) / Aa1.za(sf) 0.56 0.01 Totals Class D 48,000,000 124,000,000 (143,000,000) 29,000,000 Totals all Notes 1,568,000,000 6,406,000,000 (6,314,000,000) 1,660,000,000 3.07 Pool factor: As all notes are bullet profile, the pool factor on each is 1 until redemption. 11 NQABA FINANCE 1 (RF) LIMITED Note interest calculations for current interest payment date 22/11/2018 Step up Interest margin Interest Principal Class JSE stock Balance start Interest payment Step up Number of 3 month Margin or or fixed Total note accrued and raised Balance end of number code of period reset date date call date days Jibar fixed rate rate coupon paid (distributed) period R R R R A10 NQ1A10 115,000,000 8/22/2018 11/22/2018 5/22/2020 92 Fixed 10.435% +25 bps 10.435% 3,024,721 - 115,000,000 A21 NQ1A21 210,000,000 8/22/2018 11/22/2018 5/22/2019 92 7.017% 1.570% 2.198% 8.587% 4,545,228 - 210,000,000 A24 NQ1A24 310,000,000 8/22/2018 11/22/2018 5/22/2020 92 7.017% 1.600% 2.240% 8.617% 6,733,064 - 310,000,000 A25 NQ1A25 150,000,000 8/22/2018 11/22/2018 5/22/2022 92 7.017% 1.840% 2.576% 8.857% 3,348,674 - 150,000,000 A27 NQ1A27 658,000,000 8/22/2018 11/22/2018 5/22/2020 92 7.017% 1.850% 2.590% 8.867% 14,706,102 - 658,000,000 Totals Class A 1,443,000,000 Weighted average: 4.853% 32,357,789 - 1,443,000,000 B10 NQ1B10 11,000,000 8/22/2018 11/22/2018 5/22/2020 92 Fixed 10.635% +55 bps 10.635% 294,866 - 11,000,000 B17 NQ1B17 8,000,000 8/22/2018 11/22/2018 5/22/2020 92 7.017% 1.820% 2.548% 8.837% 178,194 - 8,000,000 B20 NQ1B20 159,000,000 8/22/2018 11/22/2018 5/22/2020 92 6.900% 2.250% 3.150% 9.150% 3,667,019 - 159,000,000 Totals Class B 178,000,000 Weighted average: 9.228% 4,186,968 - 178,000,000 C10 NQ1C10 5,000,000 8/22/2018 11/22/2018 5/22/2020 92 Fixed 10.835% +100 10.835% 136,551 - 5,000,000 C17 NQ1C17 5,000,000 8/22/2018 11/22/2018 5/22/2020 92 7.017% 2.250% bps 3.150% 9.267% 116,790 - 5,000,000 Totals Class C 10,000,000 Weighted average: 10.051% 253,340 - 10,000,000 D5 NQF1D5 5,000,000 8/22/2018 11/22/2018 5/22/2020 92 7.017% 3.250% +325 10.267% 129,392 - 5,000,000 D8 NQF1D8 24,000,000 8/22/2018 11/22/2018 5/22/2019 92 7.017% 2.850% bps 3.990% 9.867% 596,886 24,000,000 Totals Class D 29,000,000 Weighted average: 9.936% 726,278 - 29,000,000 Totals all Notes 1,660,000,000 Weighted average: 8.957% 37,524,375.00 - 1,660,000,000 Subordinated loan 290,000,000 8/22/2018 11/22/2018 92 7.017% 5.000% 12.017% 8,783,933 290,000,000 Total funding 1,950,000,000 Weighted average interest rate all funding: 9.412% 46,308,308 - 1,950,000,000 Credit enhancement limit 17.5% of notes outstanding Current value of credit enhancement 17.5% of notes outstanding Credit enhancement committed and not drawn 0% Credit enhancement in the form of a subordinated loan of R290 000 00 from EFC is available to all classes of notes. Note: As all interest accrued has been paid in full since inception, there are no interest shortfalls. Interest swaps on fixed interest Notes for current interest payment date 22/11/2018 Interest Floating: 3 Toatal after Trade JSE stock Nominal Interest payment Number of Fixed month margin Receive Pay Net receipt / number code value reset date date days rate Jibar added fixed floating (payment) R R R R 9527572 NQ1A10 115,000,000 8/22/2018 11/22/2018 92 10.435% 7.017% 9.117% 3,024,721 (2,642,681) 382,039 9527542 NQ1B10 11,000,000 8/22/2018 11/22/2018 92 10.635% 7.017% 9.317% 294,866 (258,323) 36,543 9527501 NQ1C10 5,000,000 8/22/2018 11/22/2018 92 10.835% 7.017% 9.517% 136,551 (119,940) 16,610 131,000,000 Weighted averages: 10.467% 9.149% 3,456,138 (3,020,945) 435,193 Note: The above swap contracts terminate on 22 May 2020, the expected maturity date of the related Notes. Liquidity and redraw facilities at Interest payment date Liquidity facility 11/22/2018 8/22/2018 Redraw facility 11/22/2018 8/22/2018 R R R R Facility limit (2% of Notes issued) 33,200,000 33,200,000 Facility limit 150,000,000 150,000,000 Available facility: Available facility: Outstandings at start of period - - Outstandings at start of period - - Further amounts drawn - - Further amounts drawn (repaid) - - Less: Outstandings at end of period - - Less: Outstandings at end of period - - Available facility at end of period 33,200,000 33,200,000 Available facility at end of period 150,000,000 150,000,000 The facility is due for renewal on 21/02/2018. It has never been used. The facility is due for renewal on 21/02/2018. It has never been used. The fee charge is 0.55% of the facility limit. The fee charge is 0.55% of the facility limit. Early amortisation events (summary) 11/22/2018 8/22/2018 The occurrence of any of the following events, as determined by the manager, will give rise to early amortisation of the transaction. Please see the referenced pages for further details: Reference Breach Breach Any new tax which has a material adverse effect on the Issuer No No Any Servicer event of default No No The Arrears Reserve (if required) is not fully funded for six consecutive payment dates Pages 7, 13 No No The weighted average current LTV exceeds the required weighted average current LTV by more than 10% Page 3 No No The aggregate principal balances of home loans which are in arrears for more than 3 months exceeds 2.5% of the outstanding principal amount of the Notes Page 7 No No The Issuer does not achieve the required interest margin Page 3 No No A Principal deficiency exists on any payment date Page 13 No No The rating assigned to Eskom Holdings SOC Limited is downgraded below A2.za Page 2 No No 12 NQABA FINANCE 1 (RF) LIMITED Principal deficiency ledger at Interest payment date 11/22/2018 8/22/2018 R R Early amortisation event - a principal deficiency exists on any payment date A Principal Deficiency is defined as: the amount of the Liabilities expected to exist, less the Assets expected to exist on the immediately succeeding payment date after having made all payments in accordance with the priority of payments on that payment date, if the result is less than zero. Liabilities Aggregate outstanding principal of the notes 1,660,000,000 1,660,000,000 Less: Amount allocated for the redemption of notes - - - Class A - - - Class B - - - Class C - - - Class D - - Plus: Funds raised through refinancing - - Plus: Principal amount outstanding under the redraw facility at the end of the preceding collection period - - Less: Amount allocated in current priority of payments to repay the redraw facility - - Total liabilities (L) 1,660,000,000 1,660,000,000 Assets Aggregate principal balances of home loans on the last day of the immediately preceding Collection Period 1,913,185,420 1,921,282,474 Plus: Home loans transferred on the next day from funds previously allocated 21,598,332 11,465,151 Total principal balances at start of current period 1,934,783,752 1,932,747,625 Amount allocated to purchase additional home loans on the immediately succeeding Payment Date * 15,216,248 17,252,375 * For practical reasons, transfers occur at the start of the next Collection Period Total assets (A) 1,950,000,000 1,950,000,000 Principal deficiency (L - A) (never less than zero) (PD) - - Conclusion: No principal deficiency exists Interest Deferral events If a principal deficiency exists, the amount of the deficiency must be tested successively against the outstanding principal amounts of the subordinated loan and the subordinated classes of Notes to establish whether interest on these Notes must be deferred. Principal Deficiency calculated above (PD) - - Class D interest deferral test to protect class C and above Noteholders Class D Notes 29,000,000 29,000,000 Class E Notes - - Subordinated loan 290,000,000 290,000,000 Total (D) 319,000,000 319,000,000 Net Principal Deficiency (PD - D) (never less than zero) - - Class C interest deferral test to protect class B and above Noteholders Class C Notes (C) 10,000,000 10,000,000 Net Principal Deficiency (PD - D - C) (never less than zero) - - Class B interest deferral test to protect class A Noteholders Class B Notes (B) 178,000,000 178,000,000 Net Principal Deficiency (PD - D - C - B) (never less than zero) - - NB: If there is an Interest Deferral Event, redemptions of matured Class B to D Notes will be affected. Conclusion: No interest deferral is necessary as no principal deficiency exists Reserve funds at Interest payment date R R Reserve fund balance at transaction close - - Arrears reserve at start of period 2,942,559 - Current period change (1,087,865) 2,942,559 Arrears reserve at end of period 1,854,694 2,942,559 NB: The arrears reserve has been funded since the required date. The Issuer has no other reserve funds. 13 NQABA FINANCE 1 (RF) LIMITED Cash flow statement to determination date NB: These figures are derived from the unaudited management accounts and are subject to change Three months ended: 10/31/2018 7/31/2018 R R (Loss) profit before tax per income statement (3,172,753) 320,749 Add back: Fair value adjustments 2,088,658 - Funds from operations (1,084,095) 320,749 Taxation paid (39,168) - Increase in Notes including accrued interest 408,154 1,752,677 Decrease (increase) in portfolio assets including accrued interest 8,541,708 (15,439,922) Increase in arrears reserve funded (383,738) (2,838,801) Decrease in amounts due by EFC and accounts receivable 3,882,100 1,747,224 (Decrease) increase in amounts due to EFC and accounts payable (2,130,958) 145,541 Increase (decrease) in funds 9,194,002 (14,312,532) Funds available at beginning of the period 95,492,566 109,805,098 Funds available at end of the period to Priority of Payments 104,686,568 95,492,566 Pre-enforcement Priority of Payments during the Revolving period at Interest payment date 11/22/2018 8/22/2018 R R Cash at bank as above 104,686,568 95,492,566 Refinancing of Notes - - Add: Commingling amounts subsequently received from EFC 22,350,255 26,232,355 Less: commingling amounts payable to EFC (6,774,292) (8,337,056) Available cash 120,262,531 113,387,865 Payments 1 South African Revenue Services - (130,362) 2 Security SPV trust, owner trust and third party payments (5,201,274) (5,457,318) 3 Derivative counterparty settlement received (paid) 435,193 473,825 4 Liquidity facility provider - fees (43,306) (43,306) 5 Redraw facility provider - fees (195,658) (195,658) 6 Class A to D Note holders: Interest on Class A notes (32,357,789) (31,966,156) Surplus / (Deficit) 82,899,698 76,068,891 Interest on Class B notes (4,186,968) (4,137,719) Interest payable (4,186,968) (4,137,719) Less: Class B interest deferred - - Interest on Class C notes (253,340) (251,866) Interest payable (253,340) (251,866) Less: Class C interest deferred - - Interest on Class D notes (726,278) (717,726) Interest payable (726,278) (717,726) Less: Class D interest deferred - - Surplus / (Deficit) 77,733,112 70,961,580 7 Arrears reserve (increase) decrease 1,367,845 (103,758) 8 Redraw facility provider - - 9 Matured Class A to D Note holders (classes B to D payments subject to Interest Deferral Events) - - 10 Additional home loans Purchase of additional home loans (per home loan sale agreement) (potential purchase amount less amount applied to item 8 above) (21,598,332) (11,465,151) 11 Purchases Reserve: Potential purchase amount: an amount determined on each determination date prior to the application of funds on the following payment date: Outstanding principal of the Notes 1,660,000,000 1,660,000,000 Plus: Outstanding principal amount of subordinated loan 290,000,000 290,000,000 Less: Principal balance of Home Loans (1,913,185,420) (1,921,282,474) Less: Amounts applied to items 8 and 10 (21,598,332) (11,465,151) Required purchases reserve 15,216,248 17,252,375 (15,216,248) (17,252,375) 12 Class A to D Note holders: other amounts due - - 13 Derivative counterparty - - Surplus / (Deficit) 42,286,376 42,140,296 14 Issuer expenses in excess of issuer expenses cap - - 15 Interest on Class E notes 16 Subordinated loan interest (8,783,933) (8,698,411) 17 Class E Note holders: Matured capital - - 18 Class E Note holders: Capital - - 19 Preference shareholder: Dividend due and payable - - 20 To Permitted Investments while amounts are outstanding to Secured Creditors (33,502,443) (33,441,885) - - 14 NQABA FINANCE 1 (RF) LIMITED Quarter ended YTD YTD 31/10/2018 31/10/2018 31/07/2018 Statement of Comprehensive Income R R R NB: These figures are derived from the unaudited management accounts and are subject to change. Financing income 46,119,978 107,279,399 61,159,421 Financing cost 46,180,032 106,675,640 60,495,608 Financing margin (60,053) 603,759 663,813 Loan losses (791,377) (861,767) (70,390) Loan losses written off (346,723) (417,113) (70,390) Impairment provisions (444,653) (444,653) - Interest received from bank 1,268,866 2,961,722 1,692,856 Interest swap (1,614,833) (1,228,329) 386,504 Fair value adjustments (2,088,658) (2,088,658) - Settlements received (paid) 473,825 860,329 386,504 Operating profit/(loss) (1,197,397) 1,475,386 2,672,783 Operating expenditure (1,975,356) (4,305,067) (2,329,711) Management fees 166,408 387,506 221,098 Servicer fees 833,770 1,939,128 1,105,358 Liquidity fees 43,306 100,732 57,427 Redraw Facility fees 195,658 455,116 259,459 Back-up Servicer fees 48,334 112,413 64,079 Audit fees 29,618 207,334 177,716 JSE fees 47,281 79,845 32,565 Bank Charges 2,547 5,884 3,336 Directors fees 65,169 142,017 76,847 Rating fees 77,123 179,953 102,830 Rating fees (variable) 356,633 503,286 146,653 Safe Custody fees 57,678 57,678 - National Credit Regulator fees 24,438 57,011 32,573 Strate fees 27,394 77,164 49,770 Net profit/(loss) before tax (3,172,753) (2,829,682) 343,072 Taxation - normal tax 130,362 - (130,362) Taxation - deferred tax 662,667 662,667 - Net profit/(loss) after tax (2,379,723) (2,167,015) 212,709 Net profit/(loss) after distribution (2,379,723) (2,167,015) 212,709 Retained income at beginning of the period 52,946,277 52,733,567 52,733,567 Retained income at end of the period 50,566,553 50,566,553 52,946,277 31/10/2018 31/07/2018 Statement of Financial Position R R NB: These figures are derived from the unaudited management accounts and are subject to change. Assets Non-Current Assets 1,904,870,593 1,912,749,634 Home loan advances 1,903,264,034 1,911,805,742 Properties in possession 110,000 110,000 Deferred tax 1,496,559 833,892 Current Assets 139,665,729 136,019,579 Amounts due by EFC 22,350,255 26,232,355 Cash and cash equivalents 104,686,568 95,492,566 Arrears reserve 3,222,539 2,838,801 SA Revenue Services 7,448,163 7,408,995 Interest swap fair value 1,958,204 4,046,862 Total assets 2,044,536,322 2,048,769,213 Equity and liabilities Capital and reserves 50,566,654 52,946,378 Share capital 101 101 Distributable reserves 50,566,553 52,946,277 Non-current liabilities 1,985,234,582 1,984,826,429 Interest-bearing debt 1,985,234,582 1,984,826,429 Current Liabilities 8,735,086 10,996,407 Trade and other payables 1,960,794 2,528,989 Amounts due to EFC 6,774,292 8,337,056 SA Revenue Services - 130,362 Total equity and liabilities 2,044,536,322 2,048,769,213 Quarter ended: 22/11/2018 22/08/2018 Excess spread R % R Average loan pool balance 1,915,960,515 1,917,742,989 Interest received to determination date 46,112,693 9.55% 9.56% Expenses per Priority of Payments (POP) (5,440,237) -1.13% -1.18% 40,672,456 8.42% 8.38% Note coupon less swap per POP (37,089,182) -7.68% -7.57% Excess spread before subordinated loan interest 3,583,273 0.74% 0.81% Subordinated loan interest per POP (8,783,933) -1.82% -1.80% Excess spread (5,200,660) -1.08% -0.99% 15 NQABA FINANCE 1 (RF) LIMITED Abridged glossary of definitions Terms and expressions set out below will have the meanings set out below in the Terms and Conditions and the other Transaction Documents, unless such term is separately defined in the Terms and Conditions, the Applicable Pricing Supplement or the Transaction Documents or the context otherwise requires: Absa House Price Index the National House Price Index published quarterly by Absa on its website up to 31 December 2016, the date Absa discontinued the publishing of this Index. Amortisation Period the period commencing on the expiry of the Revolving Period and ending on the delivery of an Enforcement Notice. (During this time, the Pre-Enforcement Priority of Payments applicable during the Amortisation Period will be applicable.) Arrears any amount unpaid in respect of an Instalment, other than a failure to pay which is due solely to a failure of the bank payment system or a failure of the payroll deduction mechanism through which Eskom deducts payments from the salaries of the Borrowers on behalf of EFC, provided that such failure of the payroll mechanism shall not persist for longer than one month Average Outstanding Balance the aggregate of all amounts outstanding under the Home Loans owned by the Issuer divided by the number of Home Loans owned by the Issuer Business Day a day (other than a Saturday, Sunday or statutory public holiday) on which commercial banks settle payments in Rand in Johannesburg Collection Period each calendar month period commencing on (and including) the day following a Determination Date and ending on (and including) the following Determination Date Current LTV Ratio in respect of a Home Loan, the LTV Ratio (see below) as at the most recent Determination Date Defaulted Asset any Home Loan Agreement with respect to which the Issuer has commenced legal proceedings (including the delivery of a letter of demand) for the repayment of amounts outstanding under such Home Loan Agreement Deteriorated Asset any Home Loan Agreement with respect to which more than three Instalments are in Arrears Determination Date the last day of the calendar month preceding each Payment Date Enforcement Notice a notice delivered or deemed to have been delivered to the Issuer (by the Security SPV) pursuant to the Terms and Conditions following an Event of Default under the Notes Eligibility Criteria the criteria that a Home Loan must satisfy to be acquired by the Issuer, as set out in Schedule 3 to the Home Loan Sale Agreement Fully Performing a Home Loan which is not currently in Arrears Further Advance means additional principal advances (in excess of Repayments and Prepayments) advanced to a Borrower in terms of the Home Loan Agreement concluded by such Borrower (the terms of which Home Loan Agreement will determine whether the additional advances to the Borrower are discretionary or obligatory) Home Loan a Guaranteed Home Loan or a Mortgaged Home Loan owned by the Seller that complies with the Eligibility Criteria and is sold to the Issuer pursuant to the provisions of the Home Loan Sale Agreement, which Home Loan has been granted by the Seller to a Borrower for the purpose of funding the acquisition or financing of a Property Home Loan Rate the annual lending rate of interest from time to time levied in respect of each home loan originated by the Servicer, or such other entity approved by the Rating Agency, nominal annual compounded monthly in arrears Instalment the monthly payment in respect of principal, interest (or a combination of both) and insurance premiums, if applicable, due in respect of a Home Loan, in accordance with the provisions of the relevant Home Loan Agreement Interest Payment Date(s) in relation to each Tranche of Notes, the interest payment dates specified as such in the Applicable Pricing Supplement. (In practice, all current notes issued have the same interest payment dates - see page 2.) Issuer Expense Cap an annual amount calculated by the Manager in respect of each financial year of the Issuer in respect of items 2 to 5 of the Priority of Payments, and notified in writing to the Issuer and the Rating Agency, which amount shall not exceed 0.35% of the aggregate of the Outstanding Principal Amounts of the Notes in issue from time to time plus any amounts outstanding under the Subordinated Loan(s) 16 NQABA FINANCE 1 (RF) LIMITED Abridged glossary of definitions Liquidity Facility a committed Rand denominated short term loan facility, provided by the Liquidity Facility Provider in terms of the Liquidity Facility Agreement Liquidity Facility Limit 2% of the Outstanding Principal Amount of the Notes in issue from time to time, being the maximum aggregate amount that can be drawn at any time under the Liquidity Facility Liquidity Shortfall on any Payment Date, an amount equal to the sum of items 1 to 6 in the Pre-Enforcement Priority of Payments applicable during the Revolving Period or an amount equal to the sum of items 1 to 6 in the Pre-Enforcement Priority of Payments applicable during the Amortisation Period, as the case may be payable on such Payment Date, less the cash available in the relevant Priority of Payments on such Payment Date to fund such expenses LTV Ratio in respect of a Home Loan, the loan to value ratio of such Home Loan, being the ratio of the total amount outstanding under the Home Loan to the most recent value placed on the Property by an Accredited Valuer for the purposes of valuing the Property relating to the relevant Home Loan Mandatory Redemption in part The Notes in all Tranches of Notes will be subject to mandatory redemption in part on each Interest Payment Date (Amortisation Period) during the Amortisation Period, in reducing order of rank (and pari passu if of equal rank) as determined by the respective Classes of the Notes, to the extent permitted by and in accordance with the Priority of Payments Mandatory Redemption Upon the delivery of an Enforcement Notice (following the occurrence of an Event of Default), the Notes in all following delivery of an Tranches of Notes will be immediately due and payable Enforcement Notice Mortgage Bond in respect of Mortgaged Home Loans, a first mortgage bond or sectional title bond on terms acceptable to the Home Loan Lender, registered over the Property of the relevant Borrower in favour of the Home Loan Lender as security for the obligations of such Borrower to the Home Loan Lender in relation to the Home Loan granted to such Borrower NACQ nominal annual compounded quarterly Original LTV Ratio in respect of a Home Loan, the LTV Ratio as at origination of that Home Loan, or if such information is unavailable, the greater of the Current LTV Ratio and the weighted average LTV Ratio in respect of Home Loans where an Original LTV Ratio is available Payment Date the 22nd day of every month on which the Issuer pays, or makes provision for the payment of, amounts owing to creditors of the Issuer Portfolio Covenants the criteria that the aggregate portfolio of Home Loans owned by the Issuer must satisfy, after the acquisition of each Home Loan under the Home Loan Sale Agreement, as set out in Schedule 4 to the Home Loan Sale Agreement Post-Enforcement Priority of the order in which payments shall be made from the Transaction Account, after the delivery of an Enforcement Payments Notice, as set out in the Management Agreement Potential Redraw Amount in respect of a Home Loan at any time, the aggregate monies which the Borrower is entitled to draw, and the Home Loan Lender is obliged to advance, at such time in accordance with the provisions of the Home Loan Agreement concluded by such Borrower Pre-Enforcement Priority of the Pre-Enforcement Priority of Payments applicable during the Revolving Period and the Pre-Enforcement Payments Priority of Payments applicable during the Amortisation Period Pre-Enforcement Priority of the order in which payments shall be made from the Transaction Account during the Amortisation Period and prior Payments applicable during the to delivery of an Enforcement Notice pursuant to an Event of Default, as set out in the Management Agreement. Amortisation Period (See Mandatory Redemption in part above.) Pre-Enforcement Priority of the order in which payments shall be made from the Transaction Account during the Revolving Period and prior to Payments applicable during the delivery of an Enforcement Notice pursuant to an Event of Default, as set out in the Management Agreement Revolving Period Prepayments principal repayments received under a Home Loan in excess of the minimum scheduled Instalments which a Borrower is obliged to pay PTI Ratio payment to monthly income ratio, being the ratio of the minimum required Instalment payable under a Home Loan Agreement to the combined gross monthly income of the Borrower concerned and such Borrower’s spouse and/or live-in partner and/or any Surety for such Borrower or such other amount or person as the Rating Agency, upon written request by the Issuer, confirms in writing will not adversely affect the then current Rating of the Notes (which income comprises basic salary and travel allowance) 17 NQABA FINANCE 1 (RF) LIMITED Abridged glossary of definitions Rate Determination Date in respect of each Interest Period for a Tranche of Floating Rate Notes, the day falling on the first day of that Interest Period or, if such day is not a Business Day, the first following day that is a Business Day Re-advance a re-advance to the relevant Borrower, in terms of the Home Loan Agreement concluded by such Borrower (the terms of which Home Loan Agreement will determine whether the re-advance to the Borrower is discretionary or obligatory), of a portion of the principal of such Borrower's Home Loan, which principal has previously been repaid by such Borrower (i.e., a re-advance of Repayments but excluding Prepayments) Redraw a re-advance to the relevant Borrower, in terms of the Home Loan Agreement concluded by such Borrower (the terms of which Home Loan Agreement will determine whether the re-advance to the Borrower is discretionary or obligatory), of a portion of the principal of such Borrower’s Home Loan, which principal has previously been repaid by such Borrower in excess of the minimum required Instalments (i.e. a re-advance of Prepayments) Redraw Facility a committed Rand denominated revolving facility, provided by the Redraw Facility Provider in terms of the Redraw Facility Agreement Redraw Facility Limit an amount equal to or greater than 50% (fifty percent) of Potential Redraw Amount Required Direct Employees the percentage of Home Loans advanced to employees who are directly employed by Eskom and not employed Percentage by a subsidiary company of Eskom or such other companies forming part of the Eskom group of companies, in relation to the portfolio of Home Loans owned by the Issuer which percentage on the Most Recent Evaluation Date may increase by 1% from the percentage determined at the previous Credit Enhancement Determination Date as specified in the Applicable Pricing Supplement Revolving Period the period commencing on (and including) the Commencement Date and ending on (but excluding) the occurrence of an Early Amortisation Event Secured Creditors EFC and each of the creditors of the Issuer set out in the Priority of Payments that is a party to a Transaction Document Subordinated Notes all the Notes issued on each Issue Date, other than the Class A Notes issued on that Issue Date Transaction Documents the Common Terms Agreement, the Home Loan Sale Agreement, the Servicing Agreement, the Liquidity Facility Agreement, the Redraw Facility Agreement, the Subordinated Loan Agreement, the Management Agreement, the Bank Agreement, the Guaranteed Investment Contract, the Security Agreements, the Security SPV Guarantee, the Preference Share Subscription Agreement, the Notes, the Programme Agreement, the Programme Memorandum, any Note Subscription Agreement, the agreements entered into from time to time with Derivative Counterparties, the Safe Custody Agreement, the trust deed of the Owner Trust, the trust deed of the Security SPV Owner Trust, the memorandum and articles of association of the Issuer and the Security SPV and agreements that may be entered into from time to time with Approved Originators 18