Eskom secures R15 billion loan


CAPE TOWN, February 1 – Cash-strapped power utility Eskom said on Friday it had secured a R15 billion loan facility with a consortium of local and international lenders.

The loan is guaranteed by the state and will form part of Eskom’s current capital expenditure programme.

Eskom’s CEO Phakamani Hadebe said it was encouraging that financial markets continued to view the company “in a positive light” as it tried to achieve financial and operational stability.

Andre Pillay, the company’s treasurer, said Eskom had now secured roughly 95 percent of its R72 billion funding requirement for the current financial year. The remaining five percent would be secured from various sources, including domestic debt capital markets.

“The conclusion of this facility will ensure that Eskom’s liquidity requirements are timeously fulfilled,” he said.

Pillay said Eskom had also secured 30 percent of the funding it needed for the next financial year. (ANA)