Eskom today signed a US$1.5 billion (approximately R19.6 billion) loan agreement with the China Development Bank (CDB) at a signing ceremony held at Eskom’s head office Megawatt Park in Sunninghill, Johannesburg.
The facility will form part of the financing of the Medupi Power Plant.
Eskom’s Interim Group Chief Executive Johnny Dladla said: “We are pleased to see the continuation of the journey of co-operation that we started with our Chinese partners last year. The conclusion of this second loan agreement continues to demonstrate financial markets’ confidence in Eskom and South Africa notwithstanding the challenging market conditions. We are confident that the agreement will cement Eskom’s relationship with the CDB. This loan will also aide us in ensuring that we complete the Medupi project and ensure security of energy supply.”
Eskom’s Chief Financial Officer, Anoj Singh, added that: “The loan fulfils our intent to diversify Eskom’s funding sources; to date Eskom has secured 77% of this fiscal year’s funding requirement (including cash on hand), we remain resolute that we will fully execute the required funding for the year. We are confident that our liquidity levels and financial profile will continue to improve and stabilise.”
Issued by Eskom Media Desk, 7 July 2017