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Johannesburg - South African power utility Eskom said on Friday it had signed export credit agency loans totalling €705m (R7.8bn) for its 4 800 megawatt Kusile power station.
Eskom said it had agreed the loans with Germany's KfW IPEX-Bank, HSBC, The Bank of Tokyo-Mitsubishi UFJ and Deutsche Bank.
It had also received funds from the corporate and investment banking division of South Africa's Standard Bank, Nedbank Capital and Rand Merchant Bank, a division of FirstRand Bank Limited.
"These loans, covered under Euler Hermes Export Credit Cover, will be used to fund part of the foreign content of the Kusile boiler contract with Hitachi Power Europe (HPE), which forms part of Eskom's ongoing investment in infrastructure," the utility said in a statement.
It said the loans would be re-payable over 12 years, with the repayment period starting six months after the commissioning of each of unit of the Kusile Power Station.
Eskom has launched an ambitious expansion programme but still needs to raise parts of the R385bn required to supply fast-rising demand in the country.
The utility said last month delays in signing some contracts for the coal-fired power station will result in the plant being commissioned later than the original 2013 start date.
Kusile and another 4 800 MW power plant Medupi, are Eskom's first new base-load power plants in more than two decades.
- Reuters