Eskom and the China Development Bank have signed a $1.5 billion loan agreement. The announcement came from Johnny Dladla, acting executive director of company who told Reuters “This funding will allow us to complete the construction of the Medupi coal-fired power station and secure the supply of electricity.”
The loan will be repaid over a period of more than 15 years. The grant comes under a $5-billion loan facility, set up with China, with $500 million already secured in 2016.
Dladla said that his organization had managed to mobilize 77% of the funding needed for the current fiscal year. It is also expected to make use of additional loans which are expected to raise its debt level from the current RMB 350 billion to 500 billion. The company finally counts on the interest of the international market in the acquisition of its shares. It plans to raise an additional $1 to $1.5 billion through this process.