Eskom's Gain Is South Africa's Pain as Investors Balk at Debt

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Eskom's Gain Is South Africa's Pain as Investors Balk at Debt

South African President Cyril Ramaphosa’s latest pledge to support Eskom Holdings SOC Ltd. is good news for the cash-strapped electricity company — but some investors are balking at the prospect of increased sovereign-bond issuance to pay for the bailout.

Ramaphosa told lawmakers last week South Africa would bring forward part of the 230 billion rand ($16 billion) earmarked for Eskom over the next 10 years. The Treasury hasn’t budgeted for additional support over and above the 23 billion rand allocated in February for this and each of the next two years.
 
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