Eskom’s Risk Premium Dwindles as Loss Narrows, Debt Load Eases
- Yield spread of 2028 notes over Treasuries at two-month low
- CEO De Ruyter pledges to cut costs and stamp out corruption
This article is for subscribers only.
Investors appear to be comfortable holding Eskom Holdings SOC Ltd.’s bonds even after the state-owned electricity company reported a fourth consecutive annual loss as it continues to service a mountain of debt.
The yield premium of Eskom’s 8.45% dollar notes maturing in 2028 over U.S. Treasuries narrowed to the least in more than two months on Wednesday. The bonds, unlike the majority of the company’s debt, are not guaranteed by the government.