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 2018   2017  
  Non-current        
  Interest bearing borrowings (Note 18.1) 24 071   27 613  
  Current        
  Interest bearing borrowings (Note 18.1) 7 784   3 326  
  Non-interest bearing borrowings (Note 18.2) 436   436  
    8 220   3 762  
18.1 Interest bearing borrowings        
  Vodafone Investments Luxembourg s.a.r.l. 27 862   26 856  
  During the current year, the Group modified two of the existing loan facilities received from Vodafone Investments Luxembourg s.a.r.l. On 3 May 2017, R8 000 million and R4 000 million loan facilities were revised from variable interest rate loans to fixed interest rate loans. The loan facilities bear interest at fixed rates of 8.70% and 8.99% and are repayable on 26 November 2019 and 26 July 2021 respectively. Additionally, an existing fixed rate facility of R3 000 million was re-financed with a floating rate facility of R3 000 million at a rate of 3 month Jibar plus 1.50% with a repayment date of 24 May 2022. The Group also re-financed a R1 530 million facility on 24 November 2017 and increased the facility with an additional R1 000 million draw down. This R2 530 million loan bears interest at 3 month JIBAR plus 1.50% and is repayable on 24 November 2024.        
  The loans with a combined nominal value of R27 606 million are unsecured, bear interest payable quarterly between JIBAR plus 1.15% and 1.57% and a fixed interest rate of between 8.64% and 8.99%, have repayment terms between three and seven years and are ultimately repayable between 15 July 2018 and 24 November 2024.        
  Dark Fibre Africa (Pty) Limited, Link Africa (Pty) Limited And Metrofibre Networx (Pty) Limited 1 634   1 595  
  The Group leases access transmission links under finance leases. These leases bear interest at a fixed interest rate of 7.53% and lease payments are made monthly over a lease term of 15 years per link. The finance lease liability is secured by the lessorís title to the leased assets (Note 9).        
  The Standard Bank of South Africa Limited 889   1 005  
  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 2.98% 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 1   3  
  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 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. 767   837  
  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 644   606  
  Other loans 58   37  
    31 855   30 939  
 

The aggregate fair value, if determinable, of interest bearing borrowings with a carrying amount of R31 088 million (2017: R30 102 million) amounts to R31 402 million (2017: R30 283 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 7.0% and 8.8% (2017: 8.4% and 9.1%) for rand-denominated borrowings and between 5.0% and 5.5% (2017: 4.2% and 4.6%) for foreign-denominated borrowings.

Maturity of finance lease liabilities:

Rm 0 – 1 year  2 – 5 years  5+ years   
2018        
Future minimum lease payments payable  232  906  1 324   
Future finance costs  (119) (391) (290)  
Present value of minimum lease payments payable  113  515  1 034   
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   

Interest rate and currency of interest bearing borrowings:

Rm Total Floating rate Fixed rate  
2018        
Currency        
South African rand 29 525 14 759 14 766  
Tanzanian shilling 29 29  
United States dollar 2 301 998 1 303  
  31 855 15 757 16 098  
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  
  Rm 2018   2017  
18.2 Non-interest bearing borrowings        
  Royal Bafokeng Holdings (Pty) Limited 436   436  

Notes to the consolidated annual financial statements | Note 18