Johannesburg - Eskom has raised $1.25 billion (R14.14 billion) in its first international bond sale since July 2013.
A person with knowledge of the offering - who asked not to be identified because the details weren’t yet public - said the debt, which matures in 10 years, was priced at a yield of 7.375 percent.
Eskom spokesman Khulu Phasiwe declined to comment on Thursday’s bond sale, which was arranged by Deutsche Bank, Rand Merchant Bank and Standard Bank.
FUNDING SHORTFALL
Eskom, which provides 95 percent of South Africa’s electricity - and about 40 percent of the continent’s power - been out of international capital markets after raising $1 billion (R11.31) in 2013. Since then, Moody’s and Standard & Poor’s have cut the company’s credit rating as the utility faces a funding shortfall of about R225 billion in the five years up to March 2018.
Yields on Eskom’s $1 billion (R11.31 billion) of 6.75 percent bonds due in August 2023 rose for a fourth consecutive day, climbing four basis points, or 0.04 percent, to 6.73 percent at 11:37 a.m. in Johannesburg, the highest since 17 December.
Bloomberg