Eskom secures R20 billion loan from AfDB
Eskom has received an almost R20 billion loan from the African Development Bank (AfDB) to fund its infrastructure expansion programme, which includes the Medupi and Kusile new build initiatives. Eskom said in a statement:
"The signed facilities will fund the general capital expansion programme, which include new build; maintenance and refurbishment of generation, transmission and distribution infrastructure; and skills upgrading programme."
According to the company's statement, the loan amount is broken down into a R5.36 billion ($365 million) unguaranteed senior unsecured loan and a R246 million ($10 million) guaranteed A-loan. AfDB has also been appointed the arranger for a further R14.1 billion ($965 million) guaranteed syndicated B-loan facility from lenders such as Bank of China, Bank of Tokyo-Mitsubishi, CaixaBank, Citibank, HSBC, JP Morgan Chase, KfW IPEX Bank, Siemens Bank, and Standard Chartered.
Brian Molefe (pictured), Eskom CEO, has called the loan facilities "a demonstration of the Bank's mandate to contribute to the economic development and social progress of African countries". Molefe recently announced that Eskom had secured 57 percent of funding for 2016/2017.