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Eskom Report Shows R330bn in Guaranteed Debt; R25bn Repayments Due 2021/22

SOUTH AFRICA
Eskom Annual Report Highlights:
  • Annual report notes R330bn of R488bn gross debt is guaranteed by the Treasury.
  • Over the course of 2021 Eskom will repay R25bn in guaranteed debt which then becomes available to Eskom again, and allows it to raise further guaranteed debt, if required.
  • CFO Cassim says Eskom will look to ask the DPO & Treasury to extend its guarantee facility until it restores its balance sheet to a point where guarantees are no longer needed
  • Eskom has also requested electricity tariff increase of 25-30% to boost profitability, but must be approved by NERSA.
  • Nersa has already approved 5.22% rise for 2021/22 but may push back against more increases.
  • Electricity tariffs remains a major component of the CPI basket
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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