South Africa’s State-owned power utility Eskom has secured approximately 20 billion Rand (about 1.316 billion US dollars) in loan facilities from the African Development Bank (AfDB).

“Eskom has concluded and signed three loan facilities with the AfDB. The AfDB approved the provision of the following financing to Eskom from the bank’s private sector window — 365 million USD non-guaranteed senior unsecured loan and 10 million USD guaranteed A-loan,” said the power utility on Wednesday.

The $365 million loan facility will be provided to Eskom in rand equivalent (R5 billion).

Eskom appointed the AfDB as arranger for a further 965 million USD guaranteed syndicated B-loan facility from various commercial lenders including the Bank of China, Bank of Tokyo-Mitsubishi, CaixaBank, Citibank, HSBC, JP Morgan Chase, KfW IPEX Bank, Siemens Bank and Standard Chartered.

The senior unsecured loan and the A-loan are repayable over 20 years, both with a two-year grace period from the date of signing.

The principal debt on the B-loan will be settled five years from the signing date. Other terms of the loans were negotiated at competitive Development Finance Institutions (DFIs) market-related rates.

The signed facilities will fund Eskom’s general capital expansion programme, which includes new construction; maintenance and refurbishment of generation, transmission and distribution infrastructure and a skills upgrading programme.

“The African Development Bank continues to be a significant partner and a key contributor to the progress achieved by Eskom in the execution of the current build programme,” said Eskom’s Group Chief Executive Brian Molefe.

“We are particularly grateful for the continued support in a time when Eskom has made major advancements in achieving operational and financial sustainability and expediently completing the build programme.

“These facilities are a demonstration of the Bank’s mandate to contribute to the economic development and social progress of African countries.”

Source: Nam News Network