State power firm Eskom said Friday that it has concluded a R15 billion loan facility with a consortium of local and international banks.
The company is currently sitting with R420 billion of debt, which it is struggling to service through declining revenue.
Eskom said in a statement on Friday that the facility will 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,” it said.
Eskom said it has secured approximately 95% of the R72 billion funding requirement for the financial year, while the remaining 5% will be raised through domestic debt capital markets and other sources.
“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.”
“The conclusion of the facility will ensure that Eskom’s liquidity requirements for FY18/19 are timeously fulfilled, which is critical for business operations,” Eskom said.
President Cyril Ramaphosa’s expert task team, meanwhile, has recommended that Eskom be broken into two state-owned companies.
According to BusinessDay, the idea was mooted at the cabinet lekgotla this week, with Ramaphosa hoping to announce the change during his state of the nation address on 7 February.