Eskom to Sell Foreign Currency Bond

1 November 2009 (Last Updated November 1st, 2009 18:30)

Eskom said it will sell a foreign currency bond in the initial half of 2010 in a bid to cover a funding shortfall. Eskom spokeswoman Khanyi Makhaya said that the company plans to source about 60% of funding needs abroad as part of its financial strategy, reports Bloomberg. "Th

Eskom said it will sell a foreign currency bond in the initial half of 2010 in a bid to cover a funding shortfall.

Eskom spokeswoman Khanyi Makhaya said that the company plans to source about 60% of funding needs abroad as part of its financial strategy, reports Bloomberg.

"The decision on how much will be issued and in what currency will be determined at a later stage, based on market conditions," Makhaya told Bloomberg.

Eskom, which supplies nearly 95% of South Africa’s electricity, plans to spend US$50bn (R385bn) over the next five years to improve generating capacity.

The company says it faces a funding shortfall of about US$3.86bn (R30bn) over the next three years even if its appeal to triple prices over that period is approved by regulators.