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Eskom lines up banking help

Apr 12 2010 10:23

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Johannesburg - South African state power firm Eskom has appointed JP Morgan Chase and Swiss bank Credit Suisse to help raise funds for expansion, the Business Report newspaper said on Monday.

Eskom plans to raise more than $60bn to address a chronic electricity shortage in Africa's largest economy.

"JP Morgan Chase... was appointed on Thursday to come up with an overall fund plan for Eskom. Credit Suisse... was selected as transaction advisor for the sale of an equity stake in the Kusile coal-fired plant," the paper said.

Business Report quoted Eskom's finance director Paul O'Flaherty as saying JP Morgan would examine 50 proposals to help the power utility raise funds from the bond markets to refinance existing plants.

The World Bank on Thursday approved a controversial $3.75bn for Eskom to develop a coal-fired power plant in South Africa.

Kusile and Medupi are both planned to have capacities of 4 800 megawatts.

- Reuters

 
 
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