PRETORIA, South Africa's state-owned utility company Eskom has signed a US$1.5 billion loan agreement with the China Development Bank (CDB).
The approximately R19.6 billion facility will form part of the financing of the Medupi power plant in Limpopo.
We are pleased to see the continuation of the journey of co-operation that we started with our Chinese partners last year. The conclusion of this second loan agreement continues to demonstrate financial markets' confidence in Eskom and South Africa notwithstanding the challenging market conditions, Eskom's Interim Group Chief Executive Johnny Dladla said.
Speaking at the signing ceremony held at Eskom's offices in Megawatt Park, Sunninghill, Dladla said the utility is confident that the agreement will cement the relationship between the two utilities.
This loan will also aide us in ensuring that we complete the Medupi project and ensure security of energy supply, he said.
Eskom's Chief Financial Officer Anoj Singh said the loan fulfils Eskom's intent to diversify Eskom's funding sources.
To date Eskom has secured 77% of this fiscal year's funding requirement (including cash on hand), we remain resolute that we will fully execute the required funding for the year. We are confident that our liquidity levels and financial profile will continue to improve and stabilise, said Singh.
Source: NAM NEWS NETWORK