Eskom has made progress on a deal with African Bank to sell its home loan business, which has a loan book of R5.7 billion.<\/p>\n\n\n\n
In December, Eskom announced that it had accepted a binding offer from African Bank for the staff home loan book and assets housed in Eskom Finance Company SOC Limited and its interest in Nqaba Finance 1 RF Limited.<\/p>\n\n\n\n
Through the business, Eskom offered home loans to its employees, with instalments then deducted from their salaries.<\/p>\n\n\n\n
The National Treasury required the sale of its home loan business as part of the R250 billion debt-transfer bailout delivered in 2023.<\/p>\n\n\n\n
African Bank and Eskom have now reached various agreements to regulate the transaction.<\/p>\n\n\n\n
The bank and energy supplier will now proceed to apply for applicable regulatory approvals from required bodies, such as the Competition Commission.<\/p>\n\n\n\n
Eskom said that it will continue to keep its stakeholders updated regarding the deal.<\/p>\n\n\n\n
African Bank previously noted that integrating the R5.7 billion home loan book and leveraging Eskom’s established infrastructure and relationships would help diversify its offerings.<\/p>\n\n\n\n
The traditional short-term lender will enter the secured home loan lending market as part of its IPO pathway, which has been delayed from 2025 to late 2027.<\/p>\n\n\n\n
The bank has been on an acquisition drive ahead of the listing. It paid Sasfin over R3 billion for its Commercial Property Finance and Capital Equipment Finance businesses last year.<\/p>\n\n\n\n
It previously purchased Grindrod Bank in 2022, marking its entrance into business banking.<\/p>\n\n\n\n
The group, which was placed into curatorship in 2014, recently reported that its net profit after tax increased to R202 million in the six months ended 31 March 2025.\u00a0<\/p>\n\n\n\n
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