Eskom, SA Treasury seek renewal of R15bn loan facility
JOHANNESBURG – Eskom Holdings SOC Ltd. and South Africa’s National Treasury are in talks with banks to renew a 15 billion rand ($1.04 billion) government-guaranteed loan facility that the indebted state power utility announced in February last year.
While the lenders are reluctant to renew the facility given the parlous state of Eskom’s finances, the funding is needed to help keep the company afloat, two people familiar with the discussions said. It’s unclear if the whole facility has been used.
Eskom has more than 450 billion rand in debt, isn’t generating enough income to cover its operating costs and has instituted regular power outages as insufficient spending on maintenance leads to plant breakdowns. While the government has provided the utility with a series of bailouts, Finance Minister Tito Mboweni has said there is no scope to provide more aid.
Source: iol.co.za
