Eskom signs R13bn loan agreement

Tuesday, December 29, 2009

Pretoria - Eskom Holdings has signed a loan agreement of about R13 billion with the French Export Credit Agency (ECA)..

"This fixed interest rate loan, covered by COFACE, the French Export Credit Agency, will be used to fund part of the eligible foreign content of the Medupi and Kusile turbine contracts with Alstom S&E Africa (Pty) Ltd," said the power utility.

The agreement was signed between Eskom as the borrower and five French banks namely BNP Paribas, Calyon, Societe Generale, Natixis and CIC. BNP Paribas acted as Documentation Bank, Facility Agent and ECA Agent. White & Case provided legal counsel for the borrower while Allen & Overy provided legal counsel for the lenders.

"The loan is re-payable over 12 years after the commissioning of the relevant units of the Medupi and Kusile Power Stations," said Eskom.