South Africa’s Eskom is to receive loans worth $1.03bn (€705m) for its 4,800MW Kusile power project.

The funds will be used to finance a portion boiler contract with Hitachi Power Europe, which is part of Eskom’s current infrastructure investment, the company said.

The loans, which come under Euler Hermes Export Credit Cover, have been signed with HSBC, KfW IPEX-Bank, Deutsche Bank, The Bank of Tokyo-Mitsubishi UFJ, The Standard Bank of South Africa, Nedbank Capital and Rand Merchant Bank.

The loans are to be repaid over a 12-year period, which begins six months after the commissioning of each unit of the Kusile power project.