Eskom to Seek Bondholder Approval for Plan to Spread Debt Load
- Utility plans to distribute debt across three separate units
- Organization restructuring to be completed in next 12 months
Electrical pylons in the Tembisa township outside Johannesburg.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Eskom Holdings SOC Ltd., South Africa’s state-owned electricity company, will seek bondholder approval for a plan to spread its 402 billion rand ($26 billion) of debt between three new corporate entities, according to the National Treasury.
The cash-strapped utility has developed a new corporate structure and allocated its debt between proposed generation, transmission and distribution units, the Treasury said in its medium-term budget policy statement published on Thursday. Lenders will have to approve the reorganization, it said, without giving details.