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JOHANNESBURG - Investors on Friday backed the clean-up taking place at power utility Eskom to the tune of more than $1billion (R14.02bn). 

The state-owned company said it had successfully priced a two-tranche 10-year $1.5bn global bond due in 2028. 

The oversubscribed notes offering took place after investor meetings by the power utility, the Department of Public Enterprises and the National Treasury in Europe and the US. 

Phakamani Hadebe, group chief executive of Eskom, said the successful pricing of the notes validates the improved investor sentiment towards the utility. 

“The investor confidence reflects the positive actions that have been implemented by Eskom’s leadership to transition the company towards operational and financial sustainability,” Hadebe said. 

“Eskom’s leadership will continue to work hard to effectively fulfil the strategic role of ensuring the security of supply and advancing the country’s economic growth goals.” 

The group came perilously close to having its bonds suspended by the local bourse earlier this year, because it had failed to publish financial results.

Eskom’s revenue has remained fairly flat since the 2008 recession, as demand for electricity has been subdued by a stagnating economy since then. 

- BUSINESS REPORT