What Eskom needs is a bond that is both attractive to investors and acceptable to the ratings agencies, especially to Moody’s Investors Service.
There is a desperate need for R440bn of debts to be shifted from Eskom’s books and onto someone else’s. A traditional fixed interest bond just won’t work as the interest rates would have to be ruinously high. An alternative issue of equity shares, however structured for a government entity, would wither on the vine for all the well-known reasons...
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