South Africa: Eskom Looks to Local Bonds as Liquidity Tightens Next Year
Business Day (Johannesburg)
27 October 2008
THE global financial crisis will not affect Eskom’s liquidity in this financial year, thanks to its cash resources, local bonds issued, export credit facilities, and money from local and international development finance institutions, the company said on Friday.
Eskom has indicated that about 60% of the money it hopes to raise for its R343bn capital expansion programme would be offshore.
The credit crisis has raised questions about the utility’s ability to raise the money, which it said earlier this year could be up to R150bn. “For every borrower, access to funding will be more challenging and the cost of funding will be higher.
“For Eskom specifically our liquidity situation this current financial year until March 31 2009 is adequate to meet our commitments due to our available cash resources, local bonds issued, export credit facilities and [continue reading]