State assets won’t be liquidated to fund Eskom

There is new information about the previously mentioned loan to Eskom.
Government’s R20 billion equity injection into Eskom will not be funded by liquidating non-core state assets after all. Government communicators have conceded they made an error with their earlier statement to that effect, and said the funding will actually come from Finance Minister Pravin Gordhan’s budget process.

News of the additional funding comes two weeks after Gordhan announced the extension of a loan guarantee to the power utility which now totals R350 billion. In an email under the heading “urgent correction” a government communicator said a recommendation to liquidate non-core state assets to fund an Eskom equity injection was not approved by Cabinet’s Economic Cluster.

Government’s Spokesperson Themba Maseko said the equity injection is aimed at helping Eskom with its balance sheet. “We believe that we’re strengthening Eskom’s ability to go to the markets to raise additional capital so that it can continue with the building programme,” he said.
Maseko said they intend to remove all doubts on Eskom’s ability to keep the lights on.

Article Via Eye Witness News

Eskom ’honoured’ by R15 billion loan

Eskom on Thursday said it was truly honoured by the faith that the Development Bank of Southern Africa (DBSA) has shown it regarding its future plans.

The bank and the local power utility signed a R15 billion loan agreement in Midrand on Thursday morning.

The money will be drawn over a five year period to fund various projects to increase the country’s electricity generating capacity.

It’s the biggest loan that the bank has ever approved.

Eskom CEO Brian Dames said, “It’s a very public statement by the bank in terms of its confidence in Eskom and Eskom’s ability."

"We are truly honoured by the faith and trust that your bank has shown in our organisation as well as the future of our country,” he added.

Article from EWN