Eskom to pay Nedbank R900m in interest before month end

An electricity pylon (iStock).
An electricity pylon (iStock).

Eskom is due to pay over R900m in interest to Nedbank Corporate and Investment Banking before the end of the month, it said in a notice on Wednesday evening.

The interest payment notification, posted on the Johannesburg Stock Exchange News Service (SENS), relates to bond ES23 and covers the interest period January 25 to July 24, 2019.

The interest for the six months in question amounts to R911 584 597.55. It is due to be paid on July 25.

Eskom, whose group treasurer Andre Pillay resigned earlier this month, has debt approaching R500bn. President Cyril Ramaphosa recently announced that the ailing power utility would get a R69bn cash injection over the next three years.

Bloomberg reported in June that although Eskom is not generating enough cash to service its debt, bondholders have received a 22.3% return on the state-owned company's 2028 dollar securities, which is almost three times the average for developing nation hard-currency bonds, according to Bloomberg Barclays indexes.

Nearly three-quarters of Eskom's bonds are government guaranteed.

* This article's headline previously erroneously stated that Eskom was to pay R9m. It was amended at 12.53pm on Thursday.

ZAR/USD
16.55
(+0.78)
ZAR/GBP
20.92
(+0.37)
ZAR/EUR
18.93
(+0.67)
ZAR/AUD
11.62
(+0.40)
ZAR/JPY
0.16
(+0.47)
Gold
1807.86
(-0.06)
Silver
19.25
(-0.03)
Platinum
830.00
(+0.18)
Brent Crude
43.06
(+0.42)
Palladium
1963.00
(+0.31)
All Share
56374.05
(+1.52)
Top 40
52048.69
(+1.59)
Financial 15
10697.88
(+1.61)
Industrial 25
76413.30
(+1.19)
Resource 10
54358.32
(+2.14)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 2138 votes
I am taking a hit, but should be able to recover in the next year
23% - 2742 votes
My finances have been devastated
35% - 4156 votes
It's still too early to know what the full effect will be
25% - 2975 votes
Vote