Eskom plots new multibillion-rand domestic bond programme

Eskom has engaged legal advisers to advise it on a new domestic medium-term note (DMTN) programme as it looks to raise billions of rands from the domestic debt capital markets to fund critical infrastructure and operational needs. The power producer plans to spend about R343bn over the next five years in capital and operational expenditure. Eskom’s domestic bonds are issued under its registered DMTN programme as guaranteed by the government.

The electricity utility has previously guided that its borrowing programme will remain conservative over the next two years, limited to drawdowns from existing facilities. Thereafter, it intends returning to the capital markets to fund expansionary requirements from the 2028 financial year, targeting up to R25bn a year if required. However, Eskom has indicated its intention to secure a credit rating upgrade before re-entering capital markets.