ANNOUNCEMENT 05 Feb 2018

The Public Investment Corporation of South Africa provided the national electricity utility company, Eskom with a loan to fund the company’s operations during the month of February 2018 as its debt would have led to default. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Public Investment Corporation. Media releases. "Joint Media Statement by the PIC and the GEPF: Funding Eskom" Available at: https://www.pic.gov.za/wp-content/uploads/2018/02/Joint-Media-Release-Eskom.pdf

Public Investment Corporation. Media releases."PIC Media Statement: Repayment of loan advanced to Eskom" Available at: https://www.pic.gov.za/wp-content/uploads/2018/02/Repayment-of-loan-advanced-to-Eskom.pdf

Public Investment Corporation Limited. Who we are. Available at: https://www.pic.gov.za/index.php/about-us/who-we-are/

Inception date: 05 Feb 2018 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On February 5, 2017, the Public Investment Corporation (PIC) of South Africa provided Eskom, the national electricity public utility company, with a ZAR 5 billion (USD 415 million) loan to prevent the company's default. The loan's objective is to fund the company's operation for one month and is expected to be repaid in 30 days. 

Eskom approached the PIC to alleviate what it claims are temporary liquidity constraints. At the time PIC issued the bridge financing, Eskom was seeking additional financing worth ZAR 20 billion from outside investors.

The Public Investment Corporation (PIC)
Founded in 1911, and fully owned by the Government of South Africa, PIC is an investment manager that provides its services to public bodies. The company invests both in the public equity and fixed income markets as well as in property assets, private equity, early-stage venture capital within others.

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