PRETORIA – The Public Investment Corporation (PIC) has agreed to bail out the troubled Eskom with a R5-billion bridging facility for February.
“The loan will fund the company’s operations during the month of February 2018.The PIC was approached by Eskom, which indicated that it was experiencing enormous liquidity constraints, which were threatening the company’s going concern status,” PIC said in a statement on Monday.
The government employees pension fund said all procedures were followed and said that the bridging facility is fully backed by a government guarantee.
“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 their interim financial statements last week, which had previously been delayed, in a frank and transparent manner,” said PIC CEO, Daniel Matjila.
According to the PIC, Eskom has approached other lenders as it needs R20-billion in funding.
Eskom is making steady progress in closing current R20bn funding gap. pic.twitter.com/BltiYIrrjf— Khulu Phasiwe (@KhuluPhasiwe) February 5, 2018