South Africa is considering the creation of a special-purpose vehicle as part of a restructuring of the country’s embattled state-owned power utility, which has almost R500 billion of debt, Business Day reported.
The vehicle would take over a large portion of Eskom’s debt and raise concessional financing on the back of accelerated climate-change commitments, the Johannesburg-based newspaper said, without saying where it got the information.
The proposed special-purpose vehicle would be owned by South Africa’s National Treasury and would have the advantage of being able to raise blended finance, which could include concessional climate change financing from global development financing agencies, Business Day said.
Eskom has been described as the biggest threat to South Africa’s economy by Goldman Sachs Group.
