Seven banks had agreed to loan it R20 billion, Eskom said on Wednesday afternoon – at a reasonable price.
The new credit facility is on terms "comparable to Eskom’s existing facility agreements and pricing is aligned to market benchmarks of similar structures" the utility said in a statement.
Earlier on Wednesday S&P Global Ratings had downgraded Eskom to CCC+ from B-, saying it could default on its loans because of insufficient government support.
The new loan will come from a consortium of local and international banks, and is to be used for the capital programme under which Eskom is building some of the biggest coal-fired power stations in the world.
"We view the successful execution of this facility as a demonstration of the financial markets’ confidence in Eskom’s turn-around strategy," acting group chief executive Phakamani Hadebe said in the statement.
#Eskom_MediaStatement : @Eskom_SA notes the decision by Standard and Poor’s Global Ratings (S&P) to downgrade Eskom’s long-term foreign and local currency corporate credit rating to ‘CCC+’ from ‘B-’; outlook remains negative https://t.co/ESdYZJBWNG @DPE_ZA @BDliveSA @News24— Eskom Hld SOC Ltd (@Eskom_SA) February 28, 2018
“The funding provides Eskom with sufficient liquidity to allow the company time to continue resolving its governance related issues," said acting chief financial officer Calib Cassim.
Both Hadebe and Cassim are acting in their positions after their predecessors were pushed out amid accusations that they were active participants in state capture.
Lynne Brown, the cabinet minister who had been responsible for Eskom during the period it worked closely with the Gupta family and associated companies, was also replaced in a cabinet reshuffle this week.
At the end of January Hadebe said he was comfortable Eskom would be able to raise R20 billion before March on the basis of its cashflow forecasts. However, the deal was signed on the very last day of February – shortly after that cabinet reshuffle.
Eskom came perilously close to having its bonds suspended by the JSE earlier this year because it had failed to publish financial results.
It had held back its results because it struggled to secure the money necessary to guarantee it could remain a going concern.
The Public Investment Corporation (PIC) ended up lending Eskom R5 billion – for which it was fiercely criticised – on the basis that if the electricity company ran out of money it could have "collapsed the domestic economy".
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