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Eskom Debt Solutions: PIC Debt: Equity Swap On the Cards (1/2)

SOUTH AFRICA
  • Eskom eyeing SA's largest pension fund (PIC) & Unemployment funds as the solutions to Eskom's R464bn Debt problem.
  • Considering R95bn debt equity swap for the PIC
  • Risks pushing Eskom into technical default by ratings agency standards followed by downgrades and flooding of the market with selling in SAGB's
  • Also pits Govt against employees and sets a precedent for more indebted SOEs to push for similar deals.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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