Eskom secures R48.8bn for two-thirds of 2019 funding

South African state-owned power utility, Eskom said it has secured about R48.8 billion ($3.4billion) of the funding for the financial year, ending 31 March.

Eskom said in a statement that of the remaining R23.2 billion or 32% of the total, R15 billion will come from structured products.

A further R4.5 billion will come from domestic bonds, including R2.3 billion in less than a year. The balance will come from development finance institutions and export credit agencies.

According to data compiled by Bloomberg, Eskom had amassed R399 billion of debt by the end of March and has been flagged by ratings companies as a key risk to South Africa’s economy.

The cash-strapped utility sold $1.5 billion of Eurobonds earlier this month, tapping international markets for the first time in more than three years.

Last month, Eskom signed a $2.5 billion loan agreement with China’s Development Bank to go towards construction of the Kusile power station.

Source: Bloomberg

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