Overview:
- South African electricity public utility Eskom has secured a $1.34 billion loan from the African Development Bank (AfDB).
- The syndicated A/B loan has been extended to support the utility's capital expenditure programme, and is the largest of its kind to be arranged in Africa so far.
- $965 million of the funds will be financed through agreements with Bank of China, Bank of Tokyo-Mitsubishi, CaixaBank, Citibank, HSBC, JP Morgan Chase, KfW IPEX Bank, Siemens Bank and Standard Chartered.
- The South African state has guaranteed the loan.
- Eskom's capital expenditure program should expand South Africa's electricity generation by 11,000 MW and increase its transmission network by 9,500 km.
- The loan is part of the bank's New Deal on Energy for Africa, a partnership designed to light up and power the continent by 2025.
John Crabb - Journalist - EMEA
Read further analysis of this deal on IFLR.com