Two of SA’s largest state-owned companies have announced they have new funding from Chinese state banks, with Eskom securing $2.5bn (R33.2bn) and Transnet R4bn. The funding, announced at the start of the 10th Brics summit in Johannesburg on Tuesday, comes at a time when state-owned companies are facing difficulties raising finance from local banks and investors. Both are normal commercial loans that are guaranteed by the government. In Eskom’s case, the $2.5bn loan from the China Development Bank is part of an initial $5bn credit facility it received from the Chinese bank in 2016 and will be used to fund the construction of the Kusile coal-fired power station. It has already drawn down $1.5bn for the Medupi power project. Eskom must raise R72bn in 2019 to fund its capital build programme and repay a R20bn syndicated bank loan secured in February. The Chinese loan brings the funding it has secured so far to R49bn, more than 60% of its funding requirement for the year. If you are alre...
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