SA's power utility Eskom has entered into a short-loan agreement with seven lenders, valued at R20 billion.
State-run entity Eskom has signed a R20 billion short-term credit facility with a consortium of seven local and international banks. The signing of the loan came only one day after ratings agency S&P downgraded Eskom's credit rating from 'B-' to 'CCC+'.
Calib Cassim, Eskom acting CFO, said in a statement:
“The funding provides Eskom with sufficient liquidity to allow the company time to continue resolving its governance related issues and enables Eskom to recommence with its normal funding programme required to execute the FY 2018/19 funding plans."
Cassim says Eskom will continue to engage with ratings agencies around the implementation and progress of its turnaround strategy.