Completed Mixed AidData Chinese Aid

Bank of China contributes to $965 million syndicated ‘B’ loan for Eskom Power Generation and Transmission Project

$150M USD

Funder	Bank of China (BOC)
Recipient Organization	Eskom Holdings SOC Ltd
Country	South Africa
Start Date	Jul 06, 2016
End Date	Apr 21, 2026
Duration	3,576 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97773`

Grant Description

In 2016, Bank of China contributes to USD 965 million syndicated ‘B’ loan for Eskom Power Generation and Transmission Project, South Africa On July 6, 2016, Eskom Holdings SOC Ltd (‘Eskom’) — a 100% South African state-owned power utility — signed a A-loan agreement (worth ZAR 5.3 billion) with the African Development Bank (AfDB) and a B-loan agreement (worth $965 million) with a syndicate of banks (including AFDB, Bank of China, Bank of Tokyo-Mitsubishi, CaixaBank, Citibank, HSBC, JP Morgan Chase, KfW IPEX Bank, Siemens Bank and Standard Chartered) for the Eskom Power Generation and Transmission Project.

The A-loan, which is not backed by a sovereign guarantee, carried an 18-year maturity. The B-loan, which is backed by a sovereign guaranteed, carried a 5-year maturity (final maturity date: July 2021).

Contributions to the B-loan included $10 million from AFDB, $150 million from Bank of China, $150 million from Bank of Tokyo-Mitsubishi (BTMU) , $100 million from CaixaBank, $100 million from HSBC, $50 million from Citibank, $115 million from P Morgan Chase, $100 million from KfW IPEX Bank, $50 million from Siemens Bank, and $150 million from Standard Chartered.

As at March 31, 2018, the A-loan and B-loan were fully drawn (disbursed).

The purpose of project was to support support the Eskom’s capital expenditure program (CEP), including the completion of the Ingula Hydropower Plant (1332 MW), Medupi Coal-Fired Power Plant (4764 MW) and Kusile Coal-Fired Power Plant (4800 MW).

Upon completion, Eskom's CEP was expected to expand South Africa's electricity generation by 11,000 MW and increase its transmission network by 9,500 km.

The AFDB has identified this project as having reached completion, although its precise implementation start and end dates are unknown.

📋 Staff Comments

Eskom Holdings SOC Ltd is a 100% South African state-owned power utility and is the country’s primary electricity supplier. Eskom is also a cornerstone partner to the Southern Africa Power Pool (SAPP), as it trades about 5% of its energy output with neighboring countries. It owns and operates 27 power stations with a net maximum generating capacity of 42 GW.
The AFDB project identification number is P-ZA-F00-006. See https://projectsportal.afdb.org/dataportal/VProject/show/P-ZA-F00-006

📚 Sources & References

Eskom $1.34 billion syndicated A/B loan
UPDATE 1-South Africa's Eskom says secures $1.4 billion in loan facilities from AfDB, (LON) South Africa's Eskom nears agreement on US$1.05bn loan
Lighting up and Powering Africa: AfDB boosts Eskom’s electricity generation capacity with a USD 1.34 billion jumbo loan
ESKOM Corporate Loan
South Africa - ESKOM II Power project
ESKOM POWER GENERATION & TRANSMISSION PROJECT
Resourcing the African Development Bank for effective delivery
ESKOM Holdings SOC LTD Global Medium Term Note Programme
EVALUATION OF LOAN SYNDICATION AT THE AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR SYNDICATION AND CO-FINANCING October 2018
Factsheet: Eskom Just Energy Transition Project in South Africa Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.