South Africa's power utility Eskom signed a 1.5 billion U.S. dollars loan agreement with China Development Bank (CDB) on Thursday.
"We are pleased to see the continuation of the journey of cooperation that we started with our Chinese partners last year. The conclusion of this second loan agreement continues to demonstrate financial markets' confidence in Eskom and South Africa notwithstanding the challenging market conditions. We are confident that the agreement will cement Eskom's relationship with the CDB," Eskom's Interim Group Chief Executive Johnny Dladla said.
"This loan will also aide us in ensuring that we complete the Medupi project and ensure security of energy supply," Dladla added.
According to the power utility, the agreement with China Development Bank was a clear testimony of confidence in the power utility in particular and South Africa in general.
"This loan will also aid us in ensuring that we complete the Medupi project and ensure the security of energy supply," he told journalists in Johannesburg.
Eskom's chief financial officer, Anoj Singh said the loan "fulfills our intent to diversify Eskom's funding sources, to date Eskom has secured 77 percent of this fiscal year's funding requirement (including cash on hand)."
"We remain resolute that we will fully execute the required funding for the year. We are confident that our liquidity levels and financial profile will continue to improve and stabilize," Singh concluded.
