Johannesburg - Eskom has raised R14.14bn ($1.25bn) in its first international bond sale since July 2013, a person with knowledge of the offering said.
The debt, which matures in 10 years, was priced at a yield of 7.3755%, said the person, who asked not to be identified because the details weren’t yet public. The bonds were sold on Thursday.
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Eskom has been out of international capital markets after raising R11.3bn ($1bn) in 2013. Since then, Moody’s Investors Service and Standard & Poor’s have cut the company’s credit rating as the utility faces a funding shortfall of about R225bn ($19.9 billion) in the five years through March 2018.
Yields on Eskom’s $1bn of 6.75% bonds due in August 2023 rose for a fourth day, climbing 4 basis points, or 0.04 percentage point, to 6.73% at 11:37, the highest since December 17.
Deutsche Bank AG, FirstRand’s Rand Merchant Bank unit and Standard Bank arranged the sale.
Khulu Phasiwe, a spokesperson for Eskom, declined to comment on the bond sale.