February 1, 2019 / 2:40 PM / 19 days ago

South Africa's Eskom says gets $1.1 billion loan from lending consortium

JOHANNESBURG, Feb 1 (Reuters) - South Africa’s struggling power firm Eskom has agreed a 15 billion rand ($1.1 billion) loan facility with a consortium of local and international banks, it said on Friday, an important step as it tries to close a funding gap before the end of March.

Eskom is vital to the health of Africa’s most industrialised economy as it supplies more than 90 percent of its power, but it is drowning in around 420 billion rand of debt after a decade of steep financial decline.

“The government-guaranteed facility will form part of the financing of Eskom’s current capital expenditure programme,” Eskom said in a statement. ($1 = 13.3040 rand) (Reporting by Alexander Winning Editing by James Macharia)

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