South Africa has laid out a timeline for the restructuring of Eskom Holdings SOC Ltd.. and pledged that creditors of the state-owned power company won’t suffer losses, according to a fund manager who attended a briefing by the head of the country’s Treasury.
Treasury Director-General Dondo Mogajane set out the steps in a meeting with investors in London on Tuesday, according to the person, who asked not to be identified because the event wasn’t public. The Treasury declined to comment, saying the meeting “was held behind closed doors.”
According to the fund manager, Mogajane said:
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Eskom has more than 440 billion rand ($31 billion) of debt, including $5.5 billion of Eurobonds, and doesn’t generate enough cash to service it. About two-thirds of the debt is guaranteed by the government. The company supplies almost all the country’s electricity and was forced to initiate managed blackouts earlier this year.
— With assistance by Prinesha Naidoo