https://newsletter.en.creamermedia.com
Africa|Business|Power|Service
Africa|Business|Power|Service
africa|business|power|service

Eskom restarts sale process for R9bn home-loan book

9th September 2022

By: Bloomberg

  

Font size: - +

South Africa’s indebted power utility Eskom Holdings restarted the sale of its mortgage unit, one of many measures the utility is taking to stabilise its finances.

Eskom “commenced with a process” to sell Eskom Finance, which has a R9-billion loan book, by inviting prospective bidders, the company Thursday said in a response to emailed questions.

Like other State-owned companies in South Africa, Eskom offered home loans to its staff. The unit, established more than 30 years ago, typically deducts repayments from employees’ salaries every month.

Eskom has outlined various measures in recent years to improve its finances and address a 396 billion-rand debt pile that it relies on the government to service. In some cases, progress has been slow. Eskom first sought bids for the mortgage business in 2018 in a pre-qualification process.

“Eskom ran a successful process in 2020,” the utility said. “However, with the impact of Covid-19 on the economy, the value proposition did not meet all stakeholder expectations,” it said, adding that those expectations “are aligned” for the current process.

The National Treasury is finalizing a plan to take a portion of Eskom’s debt, which is expected to be announced at the mid-term budget in October.

Edited by Bloomberg

Comments

 

Showroom

Weir
Weir

Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...

VISIT SHOWROOM 
Weir
Weir

Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.192 0.287s - 208pq - 2rq
Subscribe Now