LONDON Aug 18 South African state-owned power
utility Eskom is in talks with banks for a secured syndicated
loan of up to $1 billion, one banking source said.
Although at a very preliminary stage, the emergency coal
monetisation facility is likely to have a seven to ten year
maturity, the banker said.
"This is a massive deal. The RFP (request for proposals) has
gone out to everyone," the banker said. "There are lots of ways
to structure a deal like this but it could prove tricky, they
tried to do a similar deal about 20 years ago."
Eskom spokesperson Andrew Etzinger said: "This is one of the
options that we are exploring in terms of the business
productivity programme. These initiatives will only be pursued
if the terms are appropriate and do not impact existing lender
Eskom's previous syndicated loan was agreed in December 2009
when it signed a 12-year, 1.185 billion euro (1.59 billion US
dollar) export credit agency (ECA) backed loan financing
turbines for two power plants.
Lenders to that deal were BNP Paribas, Calyon, Societe
Generale, Natixis and CIC.
(1 US dollar = 0.7467 euro)
(Editing by Christopher Mangham)