Eskom can't keep the lights on - but it's delivering excellent profits for bondholders | Business

  • 📰 News24
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 80%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Eskom’s dollar bonds due 2028 — which don’t have an explicit government guarantee — have handed investors a total return of 10% this year, more than three times that of the emerging-market benchmark. | News24_Business

. Securities due in 2025 and 2027 are also among the best performers in the 2 100-member Bloomberg Emerging Markets Hard Currency Aggregate Index.

"We would encourage investors to add ahead of the February budget announcement in which the government will provide details on Eskom debt assumption," said Zafar Nazim, a credit analyst at JPMorgan Chase Bank, in a note to clients. The company added Eskom bonds at the end of last year, according to filings data compiled by Bloomberg.

Yields on Eskom dollar securities due 2028 have dropped 220 basis points since the start of the year to 9.30% as of Wednesday. That’s a premium of more than 300 basis points over similar-maturity South African government dollar notes. Yields on 2025 securities have plummeted 297 basis points to 9.21%, offering a spread of nearly 400 basis points.

of some of its $22.8 billion in liabilities as it seeks to restructure the utility and restore financial sustainability.Some investors are steering clear. Eskom’s challenges are not just financial, and the hurdles to overcoming them are steep, said Manuel Mondia, a Zurich-based analyst at Aquila Asset Management.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Elon Musk's reported payments plan for Twitter sends dogecoin skyrocketing 10% | Business InsiderThe prospect of dogecoin being a part of a Twitter payments ecosystem has ramped up the meme coin's gain for January.
Source: BISouthAfrica - 🏆 34. / 51 Read more »