Eskom and the China Development Bank (CDB) signed an initial $500m million credit facility agreement.

The facility will contribute towards Eskom’s current capital expenditure programme.

Eskom’s Group Chief Executive Brian Molefe said: “Eskom has been negotiating this and other facilities with China Development Bank for almost a year and the signing of this agreement is a culmination of both the Bank’s and Eskom’s tireless efforts. We are pleased to see the conclusion of the first agreement. We are confident that the agreement will cement Eskom’s relationship with the Bank. This loan will aide us in ensuring that we complete the current the capital expansion programme and further stabalise Eskom’s liquidity position.”

Eskom’s Chief Financial Officer Anoj Singh said: “The successful execution of this credit facility increases the funding secured for financial year 2016/17 to R45 billion, meaning we have secured 66% of our R69 billion funding requirement. This facility forms part of the US$5 billion facility currently under negotiation with the Bank. We appreciate the Bank’s support and look forward to concluding the remaining loan tranches currently under negotiation with the Bank.’’