South-African-based Eskom Holdings Plans ZAR 1 Billion Sukuk Issuance

South-African-based Eskom Holdings SOC (Eskom), a 100% state-owned electricity utility, is planning to issue Sukuk worth ZAR 1 billion (USD 58 million), as it seeks to diversify borrowing sources with the aim of reducing its cost of financing.

According to Eskom’s Spokesman, Sikonathi Mantshantsha, the company has appointed a lead arranger to work on the timeline for the proposed Sukuk issuance. 

Eskom has about ZAR 450 billion in debt with no current plans to seek additional Government funding. Accordingly, Eskom has assessed the viability of a ZAR-denominated Sukuk allowing Eskom to abide by its borrowing plan, through which Eskom intends to obtain sizable funding that may p...