Notes to the consolidated annual financial statements | Note 18

18. Borrowings

In terms of the memorandum of incorporation of Vodacom Group Limited, the borrowing powers of the Company are unlimited.
  Rm 2017   2016  
  Non-current        
  Interest-bearing borrowings (Note 18.1) 27 613   26 658  
  Current        
  Interest-bearing borrowings (Note 18.1) 3 326   1 848  
  Non-interest-bearing borrowings (Note 18.2) 436   436  
    3 762   2 284  
18.1 Interest bearing borrowings        
  Vodafone Investments Luxembourg s.a.r.l. 26 856   24 256  
  During the current year the Group utilised funds from a Vodafone Investments Luxembourg s.a.r.l. facility with a nominal value of R4 000 million, which will be utilised primarily for capital expenditure. The loan bears interest payable quarterly at three-month JIBAR plus 1.57%, is unsecured and repayable on 29 July 2021. The Group repaid R1 470 million on a 3 year, R3 000 million Vodafone Investments Luxembourg s.a.r.l loan on 31 March 2017, reducing the capital balance to R1 530 million. The loan bears interest at three-month JIBAR plus 1.15% and is repayable on 24 November 2017.        
  The loans with a combined nominal value of R26 630 million are unsecured, bear interest payable quarterly between JIBAR plus 1.15% and 1.57% and a fixed interest rate of 8.64% and 9.39%, have repayment terms between three and seven years and are ultimately repayable between 24 November 2017 and 29 July 2021.        
  Dark Fibre Africa (Pty) Limited, Link Africa (Pty) Limited And Metrofibre Networx (Pty) Limited 1 595   1 527  
  The Group leases access transmission links under finance leases. These leases bear interest at a fixed interest rate of 6.71% and lease payments are made monthly over a lease term of 15 years per link. The finance lease liability is secured by the lessor’s title to the leased assets (Note 9).        
  The Standard Bank of South Africa Limited 1 005   1 102  
  These loans with nominal values of US$35 million and US$40 million were raised in favour of Vodacom Congo (RDC) SA to finance capital expenditure and working capital requirements and to repay short-term borrowings. The loans bear interest payable quarterly at three-month LIBOR plus 2.45% and LIBOR plus approximately 3.31% respectively, have a five-year term and are ultimately repayable on 2 October 2019 and 12 December 2019 respectively. The Group has issued guarantees for these borrowings (Note 25.6).        
  Mirambo Limited 3   9  
  The unsecured loan with a nominal value of US$18 million was provided to Vodacom Tanzania Public Limited Company. In the prior years the nominal value of the loan was converted to equity. The remaining portion of the loan bears interest, payable quarterly, at LIBOR plus 5.0%. The total outstanding amount of loan and accrued interest shall be repaid on approval by shareholders holding at least 60% of voting rights of the Group.        
  Congolese Wireless Network s.a.r.l. 837   886  
  The loan with a nominal value of US$37 million, forms part of the capital structure of Vodacom Congo (RDC) SA, bears interest at 4.0% per annum and is repayable at the discretion of the shareholders and simultaneously in proportion to their shareholding.        
  Bank borrowings classified as financing activities 606   685  
  Other loans 37   41  
    30 939   28 506  
 

The aggregate fair value, if determinable, of interest bearing borrowings with a carrying amount of R30 102 million (2016: R27 620 million) amounts to R30 283 million (2016: R27 507 million). Where the fair value could be determined by using the discounted cash flow method, with a discount rate based on market-related interest rates, the discount rate varied between 8.4% and 9.1% (2016: 8.6% and 9.5%) for rand-denominated borrowings and between 4.2% and 4.6% (2016: 3.5% and 4.3%) for foreign-denominated borrowings.
  Maturity of finance lease liabilities:
  Rm 0 – 1 year  2 – 5 years  5+ years   
  2017        
  Future minimum lease payments payable 207  828  1 322    
   Future finance costs  (110) (366) (286)   
   Present value of minimum lease payments payable  97  462  1 036    
   2016             
   Future minimum lease payments payable  189  757  1 305    
   Future finance costs  (102) (341) (281)   
   Present value of minimum lease payments payable  87  416  1 024   

  Interest rate and currency of interest bearing borrowings:
  Rm Total Floating rate Fixed rate  
  2017        
  Currency        
  South African rand 28 488 22 883 5 605  
  United States dollar 2 451 1 137 1 314  
    30 939 24 020 6 919  
  2016        
  Currency        
  South African rand 25 825 20 288 5 537  
  United States dollar 2 681 1 269 1 412  
    28 506 21 557 6 949  

  Rm 2017   2016  
18.2 Non-interest bearing borrowings        
  Royal Bafokeng Holdings (Pty) Limited 436   436  
    436   436  
 

Due to the absence of repayment dates, fair value is not determinable.