Eskom plans to sell foreign debt in about two months’ time following an improvement in investor sentiment, its CEO Phakamani Hadebe says.
Hadebe, who was appointed permanently to the position in May, said on Thursday that whereas investors and banks were not willing to lend to Eskom in 2017, they were now approaching their credit committees to seek approval for lending.
The struggling power firm is emerging from corporate scandals and governance issues as well as a string of interim CEO appointments stretching back to 2016.
"We are seeing an increase in appetite from investors. From July last year to January we couldn’t even sell R1bn of debt, but the situation has changed dramatically," Hadebe said at a briefing on Eskom’s operations.
"We plan a foreign issuance in around two months’ time." He said between R15bn and R20bn of foreign borrowing is expected this financial year.
Eskom would reduce capital expenditure at the firm to R45bn rand from R55bn in the current financial year, he said.
Hadebe has been leading efforts to stabilise Eskom, a company at the heart of corruption scandals surrounding ousted president Jacob Zuma, as interim CEO since January after an intervention by then deputy president Cyril Ramaphosa.
Zuma has denied any wrongdoing.
Ramaphosa has made reforming state-owned firms a priority as he seeks to bolster economic growth and stave off sovereign credit-ratings downgrades.
Eskom is regularly cited by ratings agencies as one of the main threats to the country’s creditworthiness.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.