South Africa: Eskom Signs Agreement With China Development Bank

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South Africa: Eskom Signs Agreement With China Development Bank

Pretoria – Eskom and the China Development Bank (CBD) have signed an inaugural $500 million (R7 billion) credit facility agreement that will go towards the parastatal’s capital expenditure programme.

“The successful execution of this credit facility increases the funding secured for financial year 2016/17 to R51 billion, meaning we have secured 75% of our R69 billion funding requirement,” said Eskom’s Group Chief Executive Brian Molefe.

Speaking at the signing ceremony, Molefe said the power utility is pleased to see the conclusion of the first agreement with CBD as this will lay the platform for future co-operation between the two parties.

“The conclusion of this agreement continues to demonstrate investor confidence in Eskom and South Africa; notwithstanding the recent volatility experienced in the local debt capital markets. We are confident that the agreement will cement Eskom’s relationship with the Bank. This loan will also aide us in ensuring that we complete the current capital expansion programme and further stabilise Eskom’s liquidity position,” said Molefe.

With the signing of the loan facility, Eskom can continue to focus on empowering its people through build site projects such as Medupi and Kusile power stations.

“All of our projects focus on the long term benefits for communities in and around areas where Eskom operates as well as the rest of the nation. Kusile will continue to change lives in the Nkangala district community [in the Mpumalanga province] and Medupi will continue to make a difference in the lives of the people in the Limpopo province,” he said.

Molefe said the partnership with the bank is a direct catalyst for growth.

“It allows us to meet the growing demands of our nation as it is expected that electricity demand will increase by about 1% every year.”

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