Eskom has granted a credit facility valued at R15 billion ($1.1 billion) with a consortium of local and international banks.

The government approved facility will form part of the financing of the South African state-owned power utility’s current capital expenditure programme.

“We have made meaningful progress in transitioning the business and acquiring funds. We are pleased that lenders have elected to persist partnering with Eskom on our journey to complete the capital expansion programme for the benefit of South Africa’s economy," clarified Phakamani Hadebe, Eskom’s group chief executive, in a company statement.

"It is also encouraging to see that financial markets continue to view Eskom in a decisive light; as we grow towards financial and operational sustainability,” he said.

General Manager, Treasury Andre Pillay, said: “The conclusion of this facility will guarantee that Eskom’s liquidity requirements are fulfilled. To date we have raised and ontain approximately 95% of the R72 billion funding requirement for FY18/19; the remaining 5% will be raised through multiple funding sources including domestic debt capital markets.'

"The contant liquidity position places us in a position to focus on securing funding for the next financial year (FY19/20 of which 30% has already been secured).”