Notes to the financial statements | Note 6.4

6 Financing structure and commitments
6.4 Interest-bearing debt
 
  Group Company
  31 March
2023
Rm		 31 March
2022
Rm		 31 March
2023
Rm		 31 March
2022
Rm
Total interest-bearing debt 14 356 11 932 14 356 11 932
Non-current interest-bearing debt 11 999 8 221 11 999 8 221
Local debt 11 268 7 344 11 268 7 344
Foreign debt 731 877 731 877
Current portion of interest-bearing debt 2 357 3 711 2 357 3 711
Local debt 2 195 3 558 2 195 3 558
 Bonds 500 1 015 500 1 015
 Accrued interest 178 107 178 107
 Other loans1 1 517 2 436 1 517 2 436
Foreign debt 162 153 162 153
1 Other loans relate to loans from Absa Group Limited, Standard Bank and Futuregrowth Asset Management.
  Group Company
  31 March
2023
Rm		 31 March
2022
Rm 		31 March
2023
Rm		 31 March
2022
Rm
Total interest-bearing debt is made up as follows: 14 356 11 932 14 356 11 932

(a) Local debt

13 463 10 902 13 463 10 902
Telkom debt instruments 13 463 10 902 13 463 10 902
Name,maturity,ratep.a.,nominal value        
TL23, 2022, 5.907% – 592 – 592
TL24, 2022, 9.04% (fixed) – 423 – 423
TL25, 2024, 9.57% (fixed) 835 835 835 835
TL26, 2024, 9.45% 400 400 400 400
TL27, 2023, 8.908% 500 500 500 500
TL28, 2025, 9.28% (fixed) 1 000 1 000 1 000 1 000
TL29, 2025, 9.198% 500 500 500 500
TL30, 2024, 8.952% 877 877 877 877
TL31, 2026, 9.162% 623 623 623 623
TL32, 2027, 9.1% 1 000 1 000 1 000 1 000
TL33, 2033, 9.533% 700 – 700 –
Export Credit Agency (ECA) loan, 2023 – 2030, 9.783% 793 907 793 907
Export Credit Risk Agreement – insurance premium (unamortised cost) (72) (83) (72) (83)
Other loans, 2023 – 2029, 8.65% – 9.45% 6 129 3 221 6 129 3 221
Accrued interest 178 107 178 107
       
Total interest-bearing debt is made up of R14 356 million debt at amortised cost        
(31 March 2022: R11 932 million) for the Group and for the Company. Finance costs accrued on debt are included in interest-bearing debt.        
Other loans have maturities ranging from 2023 to 2029. The ECA loan is repayable quarterly and matures in 2030.        
The floating debts are priced based on the three-month JIBAR plus a margin.        
       

(b) Foreign debt

893 1 030 893 1 030
Telkom        
Maturity, rate p.a., nominal value        
ECA ZAR, 2023 – 2030, 9.783% 793 907 793 907
Euro, 2023 – 2025, 0.14% (Euro 5.1 million) 100 123 100 123
 Included in non-current and current debt is:        
Debt guaranteed by the South African Government 100 123 100 123
  During the year, R25 970 million (31 March 2022: R1 150 million) debt was raised for the Group and the Company. R23 650 million (31 March 2022: R193 million) debt was repaid for the Group and for the Company.
  The Company increased the utilisation of the committed short-term facilities during the year to fund maturing debts and working capital while negotiating and securing longer term debts.
  The Company may issue or reissue 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 4.4.
 

Interest-bearing debt

Interest-bearing debt is at amortised cost, and finance costs accrued on debt are included in interest-bearing debt. The debt is 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 3:1
  • EBITDA to finance charges of at least 3.5:1

As at 31 March 2023, Telkom's net debt to EBITDA ratio was 1.8x (31 March 2022: 1.2x) and interest cover 10.3x (31 March 2022: 11x). As at 31 March 2023, Telkom's net debt to EBITDA ratio, excluding lease liabilities, was 1.3x.

Telkom has complied with the financial covenants of its borrowing facilities during the 2023 reporting period.

 

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

The repayment of the current portion of interest-bearing debt of R2 357 million (31 March 2022: R3 711 million) for the Company and for the Group as at 31 March 2023 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. Refer to note 2.2.