Eskom signs an inaugural US$500 million (R7 billion) credit facility with China Development Bank

3 October 2016  

Eskom and the China Development Bank (CDB) today signed an inaugural US$500 million credit facility agreement at a signing ceremony held at Eskom Megawatt Park in Sunninghill. The facility will contribute towards Eskom’s current capital expenditure programme.

Eskom’s Group Chief Executive Brian Molefe said: “We are pleased to see the conclusion of this first agreement with CDB, and lay the platform for future co-operation with our Chinese partners. 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.”

Eskom’s Chief Financial Officer Anoj Singh said: “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. We appreciate the Bank’s support and look forward to concluding further facility agreements.’’

Issued by Eskom Media Desk, 3 October 2016