Sunday , June 20 2021

Debt Eskom provides a loan of R15 billion

Cape Town – The cash-generating Electricity Company Escott said on Friday it secured a $ 15 billion loan with a consortium of local and international creditors.

The loan is guaranteed by the state and will be part of Eskom's current capital spending program.

Eskom Chief Executive Officer Fakamani Haddebe said it is encouraging that financial markets continue to look at the company "in the positive light" as it tries to achieve financial and operational stability.

Andrew Pilai, the treasurer of the company, said that Eskom has already provided approximately 95% of the funding requirement of R72 billion for the current financial year. The remaining five percent will be provided by a variety of sources, including the domestic debt capital markets.

"Concluding this instrument will ensure that Eskom's liquidity requirements will be met on time," he said.

Pilai said Escott also provided 30% of the funds needed for the next financial year.

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