STATE OF POWER UTILITY
Bonds static as Eskom dithers on results date
Yields on Eskom’s six-year bond little changed state-owned power utility delays its results announcement until next week
Yields on Eskom’s six-year bond were little changed on Tuesday after the state-owned power utility delayed its results announcement until next week. On Monday, Eskom brought forward the release date of its annual results from Wednesday to Tuesday‚ before announcing later in the day that their release had now been postponed until next week. The fate of suspended Eskom CE Matshela Koko may have been known as the state utility released its annual report. The yield on the company’s dollar bonds due in January 2021 was bid at 5.52%, stronger than the 5.67% last week when the utility signed a R19.6bn loan deal with the China Development Bank to help finance the Medupi coal power plant. Yields on Eskom’s six-year bond began 2017 at 5.471%, spiking to 6.367% in April. This followed an announcement of an arbitrated settlement agreement with the Gupta family’s Tegeta Resources over a controversial R2bn fine the power utility had levied on Optimum Coal. Yields on the Eskom bond are broadly in ...
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