South Africa’s state power company is planning to propose that some of the funding the country secured to help tackle climate change take the form of loans to the government that could be converted to equity in the utility when needed. The arrangement would enable Eskom Holdings SOC Ltd. to access the $8.5 billion pledged by the US, UK, Germany, France and the European Union without adding to its debt burden, a person familiar with the proposal said.
Eskom’s ability to transition away from coal, which it uses to supply more than 80% of South Africa’s power, is key to meeting the country’s ambitions to slash its greenhouse gas emissions, the 13th-largest in the world. Still, the National Treasury will need to assess what the best arrangement is for all parties, including the government and taxpayers, rather than just meeting Eskom’s needs, said the person, who asked not to be identified because they’re not authorised to comment on the matter.
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Eskom seeks loan-to-equity option from climate fundsProposal would enable the company to access some of the $8.5bn pledged to SA at COP26 without tasking further debt ❤🙂💕
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