The power utility has signed a R20 billion loan with a consortium of both local and international banks to help improve the company’s cash flow.
FILE: Eskom spokesperson Khulu Phasiwe. Picture: Louise McAuliffe/EWN
JOHANNESBURG – Eskom says a R20 billion loan signed on Wednesday demonstrates the financial markets’ confidence in the parastatal’s turn-around strategy.
The multi-billion rand loan was signed with a consortium of both local and international banks to help improve the company’s cash flow.
It comes just hours after the announcement that S&P has downgraded Eskom’s credit rating, citing liquidity concerns and insufficient government support that could trigger a default.
The power utility says it’s cognisant of the challenges that lie ahead, but it remains committed to ensuring it changes the company’s operational and financial profile to adequate standards.
Eskom’s Khulu Phasiwe said: “The mandate coming from the board of Eskom is that Eskom has to extricate itself from this difficult financial position and some of the softer things that we can do as a company is to address the concerns that the lenders have raised before.”