Eskom goes global for funds

Eskom has begun the year with an international road show in a move to secure money for its projects in the global international financial markets.

International financial markets are an important source of funds for Eskom and are part of the utility’s funding plan. Eskom’s top management, that includes including CE Brian Dames and financial director Paul O’Flaherty, are currently on participating in the an international road show.

"The (provisional) Baa2 rating reflects the strategic importance of Eskom to SA (rated A3) as its dominant vertically integrated utility, but at the same time incorporates the execution risks related to a large and prolonged programme of capital investment needed to build out essential electricity infrastructure in SA," said Moody’s lead analyst, Helen Francis,on Tuesday.

The agency said Eskom had suffered from a weakened financial profile in recent years "although results for the first half of the financial year represent an improvement over those of the first half of the previous year".

"Additionally, a number of measures were taken in 2010 to strengthen the company and enable it to continue its investment programme".