The Government Employees Pension Fund (GEPF), via the Public Investment Corporation (PIC), has agreed to provide Eskom with a loan of R5 billion to help cover expenses for the month of February.
According to the joint statement by the GEPF, PIC and Eskom, the power utility is experiencing “enormous liquidity constraints”, which are threatening its going concern status.
The bridging facility will be entirely backed by unutilised government guarantees at Eskom’s disposal, meaning the full faith and credit of the national government will stand behind the loan.
“The GEPF and the PIC are encouraged that the new Eskom board and the new management team have moved with the necessary speed to restore good corporate governance at Eskom. The utility announced its interim financial statements last week, which had previously been delayed, in a frank and transparent manner,” Daniel Matjila, CEO for the PIC, said.
The loan will give Eskom the breathing space needed to secure the required R20 billion from other lenders.