South Africa transmission firm seen hobbled by Eskom millstone

Jan

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Eskom unbundling crippled by R396 billion debt

South Africa’s plan to create a power transmission company that will attract the investment needed to strengthen the national grid has been hobbled by its restrictive debt arrangements with parent Eskom Holdings SOC Ltd., two people familiar with the situation said.

Under the plan to separate the unit, which Eskom presented to its creditors on June 10, the national power utility will extend a 39.9 billion rand ($2.5 billion) loan to the National Transmission Company of South Africa, or NTCSA.

[Bloomberg]
 

jetlee

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I would say transmission is the one part of Eskom I wouldnt think lenders mind getting behind ... generation is a another story
 

RVQ

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I would say transmission is the one part of Eskom I wouldnt think lenders mind getting behind ... generation is a another story
Yup, Generation probably needs to go the way of SAA, sell em off for few rands while having the purchaser take on the debt along with multi-decade power purchase agreements. Probably still worth an investors money though....
 
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