Eskom has signed a three loan facilities with various development finance institutions for about R20-billion to fund the electricity parastatal’s general capital expansion programme.
The power utility said in a statement that the African Development Bank Group (AfDB) had approved a US$365 million unguaranteed senior unsecured loan and US$10 million guaranteed A-loan.
“The US$365 million loan facility will be provided to Eskom in Rand equivalent amounting to R5 billion.
“ In addition‚ Eskom appointed the AfDB as arranger for a further US$965 million guaranteed syndicated B-loan facility from various commercial lenders including Bank of China‚ Bank of Tokyo-Mitsubishi‚ CaixaBank‚ Citibank‚ HSBC‚ JP Morgan Chase‚ KfW IPEX Bank‚ Siemens Bank‚ and Standard Chartered‚” Eskom said.
The senior unsecured loan and the A-loan are payable over 20 years‚ both with a 2-year grace period from the date of signing. The principal debt on the B-loan will be settled five years from the signing date. Other terms of the loans were negotiated at competitive development finance institutions (DFIs) market-related rates‚ the company said.
The signed facilities will fund the general capital expansion programme‚ which include: new build; maintenance and refurbishment of generation‚ transmission and distribution infrastructure; and a skills upgrading programme.
“We are particularly grateful for the continued support in a time when Eskom has made major advancements in achieving operational and financial sustainability and expediently completing the build programme. These facilities are a demonstration of the Bank’s mandate to contribute to the economic development and social progress of African countries‚” said Brian Molefe‚ Eskom’s CEO.
Eskom signs loan facilities for R20bn to fund expansion programme
Eskom has signed a three loan facilities with various development finance institutions for about R20-billion to fund the electricity parastatal’s general capital expansion programme.
The power utility said in a statement that the African Development Bank Group (AfDB) had approved a US$365 million unguaranteed senior unsecured loan and US$10 million guaranteed A-loan.
“The US$365 million loan facility will be provided to Eskom in Rand equivalent amounting to R5 billion.
“ In addition‚ Eskom appointed the AfDB as arranger for a further US$965 million guaranteed syndicated B-loan facility from various commercial lenders including Bank of China‚ Bank of Tokyo-Mitsubishi‚ CaixaBank‚ Citibank‚ HSBC‚ JP Morgan Chase‚ KfW IPEX Bank‚ Siemens Bank‚ and Standard Chartered‚” Eskom said.
The senior unsecured loan and the A-loan are payable over 20 years‚ both with a 2-year grace period from the date of signing. The principal debt on the B-loan will be settled five years from the signing date. Other terms of the loans were negotiated at competitive development finance institutions (DFIs) market-related rates‚ the company said.
The signed facilities will fund the general capital expansion programme‚ which include: new build; maintenance and refurbishment of generation‚ transmission and distribution infrastructure; and a skills upgrading programme.
“We are particularly grateful for the continued support in a time when Eskom has made major advancements in achieving operational and financial sustainability and expediently completing the build programme. These facilities are a demonstration of the Bank’s mandate to contribute to the economic development and social progress of African countries‚” said Brian Molefe‚ Eskom’s CEO.