26. Interest-bearing debt
   
 
    Group   Company  
    31 March
2021
Rm
31 March
2020
Rm
31 March
2021
Rm
31 March
2020
Rm
Total interest-bearing debt 10 866 12 005 10 866 12 005
Non-current interest-bearing debt 10 173 10 105 10 173 10 105
Local debt 9 135 9 184 9 135 9 184
Foreign debt 1 038 921 1 038 921
Current portion of interest-bearing debt 693 1 900 693 1 900
Local debt 693 1 900 693 1 900
  Bond 250 250
  Commercial paper bills 600 600
  Other loans* 693 1 050 693 1 050
* Other loans relate to loans from Absa, Standard Bank and Future Growth. These are local bank loans.
Total interest-bearing debt is made up as follows:  10 866  12 005  10 866   12 005 
(a) Local debt  9 828   11 084  9 828   11 084 
Telkom debt instruments   9 828   11 084  9 828   11 084 
Name, maturity, rate p.a., nominal value             
TL22, 2021, 7.938%    250    250 
TL23, 2022, 5.332%  592   592  592   592 
TL24, 2022, 9.04% (fixed) 423   423  423   423 
TL25, 2024, 9.57% (fixed) 835   835  835   835 
TL26, 2024, 5.642%  400   400  400   400 
TL27, 2023, 5.192%  500   500  500   500 
TL28, 2025, 9.28% (fixed) 1 000   1 000  1 000   1 000 
TL29, 2025, 5.482%  500   500  500   500 
TL30, 2024, 5.11%  877   877  877   877 
TL31, 2026, 5.32%  623   623  623   623 
TL32, 2027, 5.292%  1 000   1 000  1 000   1 000 
Commercial paper bill, 2020, 7.242%    600    600 
Export Credit Agency (ECA) loan, 2022 – 2030, 9.3%    773    773 
Export Credit Agency (ECA) loan, 2022 – 2030, 6.142%  907   –  907   – 
Export Credit Risk Agreement – insurance premium (unamortised cost) (94)  (104) (94)  (104)
Loans, 2021 – 2026, 4.4% – 5.6%  2 265   –  2 265   – 
Loans, 2020 – 2026, 6.1% – 8.417%    2 815    2 815 
Total interest-bearing debt is made up of R10 866 million debt at amortised cost             
(31 March 2020: R12 005 million debt at amortised cost). Finance costs accrued on             
debt are included in trade and other payables.             
Other loans are repayable quarterly and have maturities ranging from 2021 to 2026.             
The ECA loan is repayable quartely from 2022 to 2030.             
The floating debts are priced based on the three-month JIBAR plus a margin.             
(b) Foreign debt  1 038  921  1 038   921 
Telkom  1 038  921  1 038   921 
Maturity, rate p.a., nominal value             
ECA ZAR loan: 2022 – 2030, 9.3%  907   772  907   772 
Euro: 2022 – 2025, 0.14% (2020: 0.14%), €7.6 million (2020: €7.6 million) 131  149  131   149 
Included in non-current and current debt is:             
Debt guaranteed by the South African Government  131   149  131   149 

During the year under review, R268 million (31 March 2020: R8 660 million) debt was raised for Group and Company. R1 400 million (31 March 2020: R6 950 million) debt was repaid for Group and Company.

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.

Interest-bearing debt

Interest-bearing debt is at amortised cost and finance costs accrued on debt are included in trade and other payables. The debts are unsecured but limits the Group's ability to create encumbrances on revenue or assets and secure any indebtedness without securing the outstanding debts equally and rateably with such indebtedness.

Debt covenants applicable to Telkom loans require the following for the Group:

  • Net debt to EBITDA of at least 3:1
  • EBITDA to finance charges of at least 3.5:1

During the year, no non-compliance with the requirements of the covenants were noted.

Repayments/refinancing of the current portion of interest-bearing debt

The repayment of the current portion of interest-bearing debt of R693 million (31 March 2020: R1 900 million) for Company and Group as at 31 March 2021 is expected to be repaid from available cash, operational cash flow or the issue of new debt instruments.

Management believes that sufficient funding facilities will be available at the date of repayment.