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‘Too Big to Fail’ Eskom’s Debt Revamp Is Sensible, Nedbank Says

The Kusile coal-fired power station, operated by Eskom, in Delmas, Mpumalanga province, South Africa.

The Kusile coal-fired power station, operated by Eskom, in Delmas, Mpumalanga province, South Africa.

Photographer: Waldo Swiegers/Bloomberg

South Africa’s plan to take over part of Eskom Holdings SOC Ltd.’s 396 billion rand ($24 billion) debt is in the “the right direction,” because the power utility is “too big to fail,” Nedbank Group Ltd. Chief Executive Officer Mike Brown said.

South Africa’s Treasury is finalizing a plan to take over a portion of the utility’s debt to place the struggling electricity company on a sustainable footing, Duncan Pieterse, head of assets and liability management at the National Treasury, said in an interview Wednesday. That helped lower the company’s bond yields.