Public Enterprises Minister Lynne Brown has assured investors that\u00a0South Africa\u2019s State-owned entities (SOEs) are stable.<\/p>\n
\u201cI want to assure all lenders and investors that Eskom and Transnet are credible and reliable borrowers with strong credit fundamentals, as evidenced by their respective credit profiles.<\/p>\n
\u201cTheir performances over the past financial year confirm their strong governance structures, including the stable Boards of Directors and Executive Committees,\u201d the Minister said on Thursday.<\/p>\n
Minister Brown reassured markets after Futuregrowth Asset Managers, the nation\u2019s biggest specialist fixed income manager, said it would not lend to Eskom as it had stopped lending to SOEs amid governance concerns.<\/p>\n
Futuregrowth announced that it had suspended negotiations on over R1.8 billion of debt finance to three different SOEs.<\/p>\n
Last month, Eskom completed a domestic roadshow to meet with local asset managers, including Futuregrowth Asset Managers. On Thursday, Eskom said the concerns raised by Futuregrowth were not raised at the time of the roadshow.<\/p>\n
Eskom has, however, indicated that it will continue to engage with Futuregrowth and the broader investor community to understand their concerns regarding current and future investments into Eskom.<\/p>\n
As the shareholder representative on behalf of government, Minister Brown said they have recently concluded Eskom and Transnet’s Annual General Meetings, where it was noted that the boards have successfully fulfilled their fiduciary duties. Both companies have obtained unqualified audit reports.<\/p>\n
\u201cThis is a critical indicator for any international or national investor to invest in the future of both companies and in South Africa,\u201d said Minister Brown.<\/p>\n
She urged current and potential investors to directly engage with her and the SOEs about any matter of concern regarding their investments.<\/p>\n
Cabinet seeks judicial inquiry into banks after Gupta blacklisting<\/strong><\/a><\/p>\n Second lender cuts funding to Eskom \u2013 others expected to follow: report<\/strong><\/a><\/p>\n