Group |
Company |
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28. Interest-bearing debt |
2015 Rm |
2014 Rm |
2015 Rm |
2014 Rm |
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| Non-current interest-bearing debt | 3 244 | 3 775 | 3 244 | 3 775 | |||||||||
| Total interest-bearing debt (refer to note 15) | 4 856 | 4 096 | 4 856 | 4 094 | |||||||||
| Gross interest-bearing debt | 4 966 | 4 228 | 4 966 | 4 228 | |||||||||
| Discount on debt instruments issued | (761) | (870) | (761) | (870) | |||||||||
| Finance leases | 651 | 738 | 651 | 736 | |||||||||
| Less: Current portion of interest-bearing debt | (1 612) | (321) | (1 612) | (319) | |||||||||
| Local debt | (1 260) | – | (1 260) | – | |||||||||
| Bond | (1 160) | – | (1 160) | – | |||||||||
| Other loans | (100) | – | (100) | – | |||||||||
| Foreign debt | (239) | (236) | (239) | (236) | |||||||||
| Finance leases | (113) | (85) | (113) | (83) | |||||||||
| Total interest-bearing debt is made up as follows: | 4 856 | 4 096 | 4 856 | 4 094 | |||||||||
| (a) Local debt | 3 865 | 2 815 | 3 865 | 2 815 | |||||||||
| Locally registered Telkom debt instruments | 3 865 | 2 815 | 3 865 | 2 815 | |||||||||
| Name, maturity, rate p.a., nominal value | |||||||||||||
| TL15, 2015, 11.9%, R1 160 million (2014: R1 160 million) | 1 160 | 1 160 | 1 160 | 1 160 | |||||||||
| TL20, 2020, 15%, R2 500 million (2014: R2 500 million) | 1 755 | 1 655 | 1 755 | 1 655 | |||||||||
| Term loan, 2019, 8.375%, R950 million (2014: Rnil) |
950 | – | 950 | – | |||||||||
| Total group interest-bearing debt
is made up of R4 856 million debt at amortised cost (2014: R4 096
million debt at amortised cost). Finance costs accrued on debt are
included in trade and other payables (refer to note 32). |
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| The local Telkom bonds are unsecured, but a Side letter to the Subscription Agreement (as amended) of the TL20 bond contains a number of restrictive covenants, which, if not met, could result in the early redemption of the loan at the option of the specific bondholder. The local bonds limit Telkom's ability to create encumbrances on revenue or assets, and secure any indebtedness without securing the outstanding bonds equally and rateably with such indebtedness. | |||||||||||||
| The Side letter's conditions and restrictive covenants fell away subsequently, with effect from 11 April 2014. | |||||||||||||
| Other loans consist of a five year loan, repayable biannually and with a balloon payment of R550 million. |
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| (b) Foreign debt | 340 | 543 | 340 | 543 | |||||||||
| Maturity, rate p.a., nominal value | |||||||||||||
| Euro: 2022 – 2025 0.14% (2014: 0.14%), €7.6 million (2014: €7.6 million) | 100 | 111 | 100 | 111 | |||||||||
| USD: 2011 – 2016 2.2031% (2014: 2.1318%), USD21 million (2014: USD43 million) |
240 | 432 | 240 | 432 | |||||||||
| (c) Finance leases | 651 | 738 | 651 | 736 | |||||||||
| The finance leases are secured by buildings with a carrying value of R58 million
(2014: R73 million) (refer to note 13). These amounts are repayable within a period of
4 years. Interest rates are approximately 13.43%. Refer to note 38. |
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| Included in non-current and current debt is: | |||||||||||||
| Debt guaranteed by the South African government | 100 | 111 | 100 | 111 | |||||||||
The company may issue or re-issue locally registered debt instruments in terms of the Post Office Amendment Act 85 of 1991.
The borrowing powers of the company are set out as per note 22.
Repayments/refinancing of current portion of interest-bearing debt
The repayment of the current portion of interest-bearing debt of R1 612 million (2014: R321 million) (nominal) for group and R1 612 million (2014: R319 million) (nominal) for company as at 31 March 2015 is expected to be repaid from available cash balances, available operational cash flow and/or the issue of new debt instruments.
Management believes that sufficient funding facilities will be available at the dates of repayment.