Futuregrowth decision does not put funding plan at risk: Eskom

Futuregrowth decision does not put funding plan at risk: Eskom

Eskom on Thursday said it has taken note of local asset manager Futuregrowth Asset Management's announcement that it would suspend additional loans to six of South Africa's State Owned Entities (SOEs), including to the power utility.

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Futuregrowth's decision initially included the suspension of new loans, and roll-over of existing debt to Eskom, Transnet, Sanral, Landbank, the Industrial Development Corporation (IDC) and the Development Bank of South Africa (DBSA).

In a statement, Eskom said it regularly engages with asset managers and other relevant financial institutions and will continue to do so.

"To this end, Eskom completed a domestic road show to meet with local asset managers in August 2016, including Futuregrowth Asset Managers, and current concerns were not raised. Eskom will however, continue to engage with Futuregrowth Asset Managers and the broader investor community to understand the recent concerns raised regarding current and future investments into Eskom.," the power utility said in a statement.

"As at the end of August 2016, Eskom has available liquidity of approximately R38 billion and has secured more than 57 percent of its borrowing requirement of R69 billion for the financial year 2016/17. Consequently, the announcement by Futuregrowth Asset Managers does not place Eskom's funding plan at risk and I am confident that the funding for the year will be raised," said Anoj Singh, Eskom's Chief Financial Officer.

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