mining & energy

Picture Credit: GCIS

Eskom Signs R19.6bn Loan Agreement With China

Thursday, 06 July 2017

Acting chief executive Johnny Dladla says the funds will be used to finance the Medupi coal power plant.

JOHANNESBURG - South Africa's state power utility Eskom signed a R19.6 billion ($1.5 billion) loan agreement with China Development Bank on Thursday to finance the Medupi coal power plant, its acting chief executive said.

"The conclusion of this second loan agreement continues to demonstrate financial market confidence in Eskom and South Africa notwithstanding the challenging market conditions," Eskom's Johnny Dladla told reporters at the signing ceremony.

Eskom's chief financial officer Anoj Singh said the Chinese loan would be paid back over 15 years. He expected Eskom's debt to peak at R500 billion, up from R300 billion currently.

Credits: Reuters