Eskom raises R5.2bn through loan drawdowns

Eskom said on Friday 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% 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.

Read: Eskom yields near 2018 low as Moody’s plan spurs bailout talk

Eskom said it had secured 52% 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, but South Africa’s 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 April 30, 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.