8 August 2013 – Eskom Holdings has successfully priced a 10 year US$1 billion senior unsecured and unguaranteed 6.75% global bond due in 2023 under its US$4 billion global medium term note programme following a series of investor meetings by Eskom and its shareholder in the United States of America and Europe.
The bond is scheduled to mature on the 6th of August 2023.The proceeds of the offering will be added to Eskom’s general funding pool, to be applied to its committed programme of investment in new generation and transmission capacity and for general working capital.
“We welcome the confidence that international investors have shown in Eskom and in South Africa, particularly in the midst of such challenging markets,” Eskom CEO Brian Dames says. “The offer is an important part of our well-established funding programme and the proceeds will contribute to the completion of our committed capital expansion programme and so help to keep the lights on for all South Africans. Its success was facilitated by government’s strong support for Eskom.”
The joint mandated lead managers of the issue were Barclays and Citigroup together with their respective local partners Vunani and aloeCap. Application will be made for the bond Notes to be listed on the Luxembourg stock exchange.