Pretoria – Eskom will continue to engage asset manager Futuregrowth Asset Management, despite the body’s decision to suspend any additional loans to some of the country’s largest State owned companies.
“Eskom notes the comments by local asset manager Futuregrowth Asset Management regarding investments in certain State owned companies (SOCs), including Eskom.
“Local asset managers provide considerable support to the funding of SOCs and the general local bond market. Eskom regularly engages with asset managers and other relevant financial institutions and will continue to do so,” the power utility said on Thursday.
Futuregrowth announced that it has suspended negotiations on over R1.8 billion of debt finance to three different SOCs.
Last month, Eskom completed a domestic road show to meet with local asset managers, including Futuregrowth Asset Managers, and that current concerns were not raised.
“Eskom will however, continue to engage with Futuregrowth Asset Managers and the broader investor community to understand the recent concerns raised regarding current and future investments into Eskom.
“As at the end of August 2016, Eskom has available liquidity of approximately R38 billion and has secured more than 57% of its borrowing requirement of R69 billion for the financial year 2016/17.
“Consequently, the announcement by Futuregrowth Asset Managers does not place Eskom’s funding plan at risk and I am confident that the funding for the year will be raised,” said Eskom’s Chief Financial Officer Anoj Singh.