Telkom AR front.qxp

37. UNDRAWN BORROWING FACILITIES AND GUARANTEES (continued)
37.2 Foreign denominated facilities and guarantees
Rand denominated facilities and guarantees (continued)
Telkom Annual Report 2009 219
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
2007 2008 2009
Guarantor Details Beneficiary Rm Rm Rm
Vodacom (Proprietary) All guarantees individually less than Various 3 2 2
Limited R2 million
Vodacom Service All guarantees individually less than Various 3 3 2
Provider Company R2 million
(Proprietary) Limited
Vodacom Service Guarantee in respect of receipt of SA Insurance 27 32 35
Provider Company independent intermediaries of premiums Association
(Proprietary) Limited on behalf of short-term insurers and for benefit
Lloyd’s underwriters, and relating to
short-term insurance business carried on
in RSA. Renewable annually
of insurers
Smartcom (Proprietary) Guarantees for salary bank account Various 3 – –
Limited and debit orders
Cointel VAS (Proprietary) Guarantees for operating lease Various 1 – –
Limited and debit orders
Vodacom (Proprietary)
Limited
Letter of undertaking in respect of land Attorneys 7 17 33
Vodacom Properties
No.2 (Proprietary)
Limited
Lease guarantees Various – – 3
44 54 75
The Group exposure is 50% of the following items:
Vodacom Congo (RDC) s.p.r.l. has various facilities of US$31 million which was fully utilised as at March 31, 2009. Vodacom
International Limited has a revolving term loan of US$180 million which was fully utilised at March 31, 2009. Vodacom Lesotho
(Proprietary) Limited has overdraft facilities with various banks of M25 million of which M13 million was utilised at March 31, 2009.
Vodacom Tanzania Limited has medium-term loans for US$47 million and TZS54,000 million of which US$40 million and TZSNil was
utilised at March 31, 2009. Foreign currency term facilities are predominantly US Dollar based, at various maturities and are utilised for
bridging and short-term working capital needs.
2007 2008 2009
Guarantor Details Beneficiary Rm Rm Rm
Vodacom Group Guarantees issued for the obligation of Standard Bank US$180 million 1,312 1,463 1,735
(Proprietary) Limited Vodacom International Limited’s term plc and RMB (2008:
loan facility*# International US$180 million;
(Dublin) Limited 2007:
US$180 million)
1,312 1,463 1,735
* Foreign denominated guarantees amounting to R1,735 million (2008: R1,463 million; 2007: R1,312 million) issued in support of Vodacom Congo (RDC)
s.p.r.l. are included as liabilities in the disposal group held for sale.
# The Group is in compliance with the covenants attached to the term loan facility.
Companies within the Group have provided the following guarantees:
Vodacom (Proprietary) Limited provides an unlimited guarantee for borrowings entered into by Vodacom Group (Proprietary) Limited.