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Eskom raised R57bn from financial markets for the previous financial year, ended March 31, 2018 and its board has approved a borrowing plan of R72bn necessary to ensure adequate liquidity.
This is according to a notice issued to shareholders on Tuesday.
“Funding raised will meet the business requirements and ensure appropriate liquidity levels,” the notice read.
The state power utility told members of Parliament’s portfolio committee on public enterprises at a briefing last week that it plans to raise R72bn this year. It will repay R20bn and the remaining R52bn is capital expenditure.
Acting chief financial officer Calib Cassim explained that capital expenditure is being funded by debt.
Since the appointment of the new board on January 20, investor sentiment has improved “substantially”, he said last week. “We are looking to leverage on this in future”.
Deputy board chair Sindi Mabaso-Koyana shared these views. She said that financial and capital markets are starting to see changes in Eskom.
As for the group’s going concern status, Cassim expects the qualified audit opinion to remain for the next 12 months, until Eskom can demonstrate an increase in its Ebitda and address its cost base.
Bloomberg previously reported that Eskom has made a “comeback” in the domestic bond market.
Debt issuance by SA companies increased by 1.7% to R36.9bn, Bloomberg reported. Eskom’s borrowing in particular increased to R6.4bn for the year-to-date, compared to R716m for the same period last year.
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