CAPE TOWN:Power utility Eskom said on Friday it aims to borrow a further R55bn and turn its government debt into equity as it looks to boost generating capacity amid chronic power cuts.
The conversion of the state’s subordinated loan to equity is part of a government financial package for Eskom, and includes a R23bn injection that will help the utility plug an estimated funding gap to 2018 of R200bn.
“We are quite confident that we will be able to raise the R55bn during this financial year,” acting CE Brian Molefe told Parliament. It was not clear how Eskom would raise the funds.
Eskom and government also said a R60bn loan from the state would be converted into equity to improve the utility’s liquidity and expand its borrowing capacity.
