ESKOM has staved off concerns about securing funding for the 2016-17 financial year after the state utility signed a $500m credit agreement with the China Development Bank, with the prospect of another $4.5bn in credit to come.The agreement illustrates a growing preference by Eskom to access finance from multilateral organisations rather than exclusively from the bond market, as it has in the past.It means that Eskom has so far met more than 70% of its R69bn funding requirement for the year, with another R18bn to go. Eskom says a further $4.5bn from the same source is still under negotiation, with expectations that this will take care of the remaining requirement.The $500m loan is secured and will be payable over a period of three years.Eskom spokesman Khulu Phasiwe said the utility would not disclose the terms of the loan.It is, however, part of a much bigger bid by the China Development Bank to fund South African energy and infrastructure projects.The bank had set aside $20bn, of ...
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