State-owned power utility Eskom indicated that funding from development finance institutions (DFIs) is likely to form the backbone of its capital-raising effort over the coming five years, during which its debt is expected to peak at R500-billion. However, Eskom followed fellow State-owned company Transnet in stressing that the market remained receptive to its bonds, despite its subinvestment-grade rating, the recent downgrade of South Africa’s foreign currency rating to junk and investor questions over the state of governance at the company.
