Eskom secures R20-billion in bank loans

Eskom secures R20-billion in bank loans.
Eskom secures R20-billion in bank loans.

Eskom has today signed a R20-billion short-term credit facility with a consortium of local and international banks.

The government guaranteed facility will form part of the financing of Eskom’s current capital expenditure programme‚ the utility said in a statement.

The terms of the facility are comparable to Eskom’s existing facility agreements and pricing is aligned to market benchmarks of similar structures‚ it added.

Eskom’s Interim Group Chief Executive Phakamani Hadebe said: “We view the successful execution of this facility as a demonstration of the financial markets’ confidence in Eskom’s turn-around strategy.

We are cognisant of the challenges that are still ahead for the business and we are committed to ensuring that we expediently transition Eskom’s operational and financial profile to adequate standards. Eskom remains a critical enabler for South Africa’s economic growth and it is critical that we attain maximum operational efficiency for the business to avoid negatively impacting the macro-environment”.

Acting Chief Financial Officer Calib Cassim said: “Concluding this facility with the suite of banks reiterates the renewed willingness by financial markets to engage with Eskom. The funding provides Eskom with sufficient liquidity to allow the company time to continue resolving its governance related issues and enables Eskom to recommence with its normal funding programme required to execute the FY2018/19 funding plan”.

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