Eskom‚ SA’s debt-ridden power utility‚ says it has secured a R15bn loan facility from a consortium of local and international banks.
The state-owned company is in a dire financial position with a negative cash flow and a debt burden of R419bn‚ which it is unable to service from revenue.
Eskom 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 and 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 comes amid recommendations that Eskom should be broken up into separate state-owned companies.
President Cyril Ramaphosa is hoping to announce the new shape and size of Eskom in his state of the nation address on February 7. The ANC has agreed in principle to the unbundling.
By: Nick Hedley
Source: TMG Digital.