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Eskom secures R15bn loan

Feb 01 2019 17:17
Fin24

Eskom has secured a R15bn credit facility which will form part of its current capital expenditure programme, the power utility said in a statement on Friday.

The credit facility is from a consortium of local and international banks.

According to Andre Pillay, general manager treasury, the loan will ensure Eskom can meet its liquidity requirements.

So far 95% of Eskom's R72bn funding requirement for the 2018/19 financial year has been met. "The remaining 5% will be raised through various funding sources including domestic debt capital markets," he said.

So far Eskom has secured 30% of its funding requirement for the 2019/20 financial year. "The stable liquidity position places us in a position to focus on securing funding for the next financial year," he said.

"We have made significant progress in transitioning the business and securing funding," CEO Phakamani Hadebe said.

"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."

The power utility has R419bn in debt which it has to service. Eskom has applied for tariff increases of 15% over the next three years, as part of the options to help service debt costs, Fin24 previously reported.

Earlier this week Public Enterprises Minister Pravin Gordhan who was speaking at the Business Economic Indaba in Johannesburg, said that the power utility - which was at the centre of state capture - will undergo a "major restructuring exercise".

He explained that there was no room in the fiscus for "endless bailouts".

"Should Eskom be unbundled …it’s going to be a debate we have soon and it’s going to be beyond a debate as we need very fast movement if we’re going to have Eskom as a credible entity, both operationally and financially, even in a month’s time, but you’ll hear about this in due course," Gordhan said.

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