PRETORIA - The Public Investment Corporation (PIC) - on behalf of the government employees’ pension fund - has announced it will give Eskom an advance of R5 billion to cover the power utility’s operational costs for this month.
The PIC says Eskom asked for the bailout because it was experiencing significant liquidity problems.
It says it conducted its own due diligence and is satisfied that the R5 billion bridging finance for Eskom is fully backed by a government guarantee.
It added that its board and the government employees’ pension fund are encouraged by recent governance changes at the power utility.
It’s understood Eskom has approached other lenders in an effort to raise about R20 billion.
The PIC says the state-owned company has demonstrated that it has secured financial commitment to meet its borrowing requirements over the short term.
(Edited by Winnie Theletsane)