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Two of SA's largest public companies have announced they have new financing from Chinese state banks, Eskom getting $ 2.5 billion (R33bn) and Transnet R4bn.
Funding Announced at the Beginning of 10th Brics Tuesday's summit in Johannesburg comes at a time when state-owned companies are struggling to find funding from local banks and investors.
Both are normal commercial loans guaranteed by the government
bn China Development Bank loan is part of an initial $ 5 billion credit facility received from the Chinese bank in 2016 and will serve to finance the construction of the Kusile coal plant. It has already drawn $ 1.5 billion for the Medupi energy project
Eskom is to raise 72 billion rand in 2019 to finance its capital construction program and repay a syndicated bank loan of 20 billion rand secured in February. The Chinese loan brings the funding it has obtained so far to 49 billion rand, or more than 60% of its funding needs for the year.
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