In South Africa, the electric company Eskom is in the midst of a crisis. Between the recurring mismanagement of its last years and the difficulties in managing its production costs, the entity has accumulated a heavy liability that affects its financial performance.
In South Africa, the power company Eskom could receive financial support from Public Investment Corp (PIC), the body that manages civil servants’ pension funds to reduce its heavy liabilities.
According to Bloomberg, citing sources close to the matter, South African bank Nedbank, which is managing discussions to restructure the company’s debt, is currently considering the possibility of setting up a common debt fund (CFC). This ad hoc entity is expected to have a minimum envelope of 100 billion rand ($6.7 billion) to be provided by PIC.
If this announcement materializes in the coming weeks, it would bode well for Eskom, whose financial problems have earned it the greatest threat to the South African economy by Goldman Sachs.
The state-owned company, which is struggling to cover its production costs, is facing a global debt of 464 billion rand ($32 billion), which it estimates can repay only 200 billion rand.
PIC manages an asset portfolio of nearly $130 billion. It also holds about 90 billion rand of Eskom bonds.
Source: Agence Ecofin
The post SA’s Eskom to receive support from Public Investment Corp to ease debt appeared first on Energy News | Oil and Gas News.