State power firm Eskom said Friday that it has concluded a R15 billion loan facility with a consortium of local and international banks.<\/p>\n
The company is currently sitting with R420 billion of debt, which it is struggling to service through declining revenue.<\/p>\n
Eskom said in a statement on Friday that the facility will partly fund its capital expenditure programme.<\/p>\n
“The conclusion of the facility will ensure that Eskom\u2019s liquidity requirements for financial year 2018-2019 are timeously fulfilled, which is critical for business operations,” it said.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n
\u201cThe conclusion of the facility will ensure that Eskom\u2019s liquidity requirements for FY18\/19 are timeously fulfilled, which is critical for business operations,\u201d Eskom said.<\/p>\n
President Cyril Ramaphosa\u2019s expert task team, meanwhile, has recommended that Eskom be broken into two state-owned companies.<\/p>\n