Eskom concludes a R15bn loan facility with a consortium of lenders

Eskom has concluded a R15-billion credit facility with a consortium of local and international banks, it said in a statement this afternoon, adding that the government guaranteed facility will form part of the financing of Eskom’s current capital expenditure programme.

“We have made significant progress in transitioning the business and securing funding. We are pleased that lenders have elected to continue partnering with Eskom on our journey to complete the capital expansion programme for the benefit of South Africa’s economy. It is also encouraging to see that financial markets continue to view Eskom in a positive light; as we progress towards financial and operational sustainability”, said Phakamani Hadebe, Eskom’s Group Chief Executive.

Andre Pillay, General Manager Treasury said: “the conclusion of this facility will ensure that Eskom’s liquidity requirements are timeously fulfilled. To date we have raised and secured approximately 95% of the R72 billion funding requirement for FY18/19; the remaining 5% will be raised through various funding sources including domestic debt capital markets. The stable liquidity position places us in a position to focus on securing funding for the next financial year (FY19/20 of which 30% has already been secured).”

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