Energy
Cities Owing Eskom $5 Billion Test Investors’ Goodwill
- South African power firm is struggling to recoup unpaid bills
- Eskom’s turnaround has lured investors, reduced debt premia
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A rare moment of investor goodwill for South Africa’s most indebted company is being tested by its inability to collect a staggering $5 billion in unpaid bills from cities and towns across the country.
With Eskom Holdings SOC Ltd on the verge of turning its first profit in nearly a decade, State Street Liquidity Plc, JPMorgan Investment Management Inc, abrdn Plc, and Thrivent Financial are among funds that added to holdings of its 2028 bonds in the latest quarter, filings show. That’s helped push the extra yield investors demand to own Eskom debt without a government guarantee to the lowest on record.