Eskom raises R5.2bn through loan drawdowns


Power utility Eskom said it had raised R5.2-billion through drawdowns against a portion of committed loans, R4-billion of which was received from China Development Bank (CDB), and the issuance of domestic bonds.

The struggling utility supplies more than 90 percent of the electricity in Africa’s most industrialised economy but has a R420-billion debt which it struggles to service, poses a threat to the country’s credit rating.

Eskom said it had secured 52 percent of its plan to borrow R46-billion during the 2019/20 financial year.

Eskom had expected to draw down R7-billion from a $2.5-billion CDB loan facility by late March.

Eskom

The finance ministry said last month that the drawdown had been delayed, meaning a planned bailout had to be brought forward.

The company said its liquidity stood at R7.7-billion at 30 April 2019.

President Cyril Ramaphosa has prioritised fixing the ailing utility in his new five-year term with government having pledged a R23-billion a year bailout for Eskom over the next three years.

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