Eskom secures R15bn loan facility
The struggling power utility has a debt burden of R419bn
Eskom, SA’s debt-ridden power utility, says it has secured a R15bn loan facility from a consortium of local and international banks. The power utility is in a dire financial position with negative cash flow and a debt burden of R419bn, which it is unable to service from revenue. The state-owned company said in a statement on Friday afternoon the R15bn government-guaranteed facility would partly fund its capital expenditure programme. “The conclusion of the facility will ensure that Eskom’s liquidity requirements for financial year 2018-2019 are timeously fulfilled, which is critical for business operations,” the company said. Eskom has now secured about 95% of the R72bn funding requirement for the financial year, while the remaining 5% will be raised through domestic debt capital markets and other sources, it said. “The stable liquidity position places the company in a position to focus on securing funding for the next financial year, of which 30% has already been secured.” This com...
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