[miningmx.com] – ESKOM would borrow more money if it failed to win the proposed 25% tariff increase from the National Energy Regulator of South Africa (Nersa), an outcome that looked increasingly unlikely, said BDLive.
Citing Lynne Brown, South Africa’s public enterprises minister, BDLive said that Eskom’s bond raising exercises were becoming more expensive, but there was still a healthy appetite for them in the market.
Eskom would also receive a R10bn cash injection at the end of this month from the Treasury and a further R13bn next year whilst a R60bn sub-ordinated loan could be converted to equity, which would give Eskom more balance sheet flexibility.
“If Nersa doesn’t give the increase then Eskom will have to re-examine its finances and go out and borrow,” said Brown.
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