South Africa’s state-owned power utility, Eskom, has secured from the Chinese Development Bank a $500 million credit line. The loan will provide the firm additional funds to finance capital expenditure in the 2016/2017 financial year.

“The successful execution of this credit facility increases the funding secured for financial year 2016/17 to R51bn, meaning we have secured 75 percent of our R69bn funding requirement,” said Eskom’s chief financial officer, Anoj singh.

According to Brian Molefe, the firm’s director, securing the loan is proof of investors’ trust in the South African power sector.

Eskom aims to invest $12 billion in the sector in the next three years.

Gwladys Johnson