Eskom SOC to Issue Debt to Build Plants

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South African utility firm Eskom SOC Holdings Ltd is in the process of building the third and fourth largest coal fired plants in the world. According to Chief Executive Officer Brian Dames, the company would be selling more than US$1 billion worth of bonds to help finance the construction of the plants.

In an interview at the World Economic Forum for Africa held in Cape Town SA, "We will this year approach the markets to continue our fundraising. It all depends on our capital expenditures. We haven't drawn as aggresively. This year we will be going to the markets to raise some additional debt, just over US$1 billion."

The company would be investing 500 billion rand or US$55.5 billion through 2017 to replace old equipment and expanding overall capacity in anticipation of the possible shortfall in power supplies due to increasing demand. They would like to avoid the rolling blackouts that plagued the country back in January 2008. The current power output is struggling to keep up with the growing demand from the economy.

Eskom would issuing 60 billion rand of debt in the next five years through 2017 to fund expansion.

Tags
South Africa, Debt

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