On Tuesday, acting Eskom CEO Phakamani Hadebe announced that the parastatal has raised R43 billion from the market and is expecting a comprehensive, integrated strategy in September.
“As of today, I’m happy to announce that Eskom has been able to raise in gross terms R43-billion from the market…in net terms we have raised borrowing of R33-billion,” Hadebe told Parliament’s Portfolio Committee on Energy.
“This indicates that the market or fund managers and investors are beginning to welcome Eskom back into the financial market. It also highlights that Eskom can begin to diversify its funding because it is attracting various investors,” Hadebe added.
Addressing MPs in Parliament on Tuesday, calling for a higher tariff increase from the national energy regulator, Nersa, Hadebe said: “We are expecting that by the end of September we will have a comprehensive, integrated strategy on how to manoeuvre Eskom going forward.”
He said that decisions on the strategy would also depend on “the tariff relationship” with the National Energy Regulator of South Africa (Nersa), Engineering News reported. Read more: Deadline looming for public on Eskom 30% tariff hike
Regaining investor confidence
According to Engineering News, Hadebe said that it had to raise R20 billion to ease cash flow problems.
“The board engaged with market participants to try to raise R20 billion. It became clear to all of us that the investors wanted to see commitment with regard to governance from Eskom and how we are dealing with those who are corrupt. That is why in the space of two weeks, the board exited six senior officials of Eskom who were implicated in corrupt activities.”
According to Hadebe, once this was achieved, the utility was in a position to raise additional finance.
Eskom has to borrow a total of R72-billion in 2018/19.