Eskom bondholders take comfort from guarantee amid rescue talks

Debt revamp: Under the terms of the agreement, the government is obliged to step in when Eskom anticipates payment pressure. — Bloomberg

JOHANNESBURG: Bondholders of South Africa’s state-owned electricity company are watching the latest round of rescue talks from a distance.

Yields suggest they’re confident their money is safe, whether or not the discussions result in a sustainable solution for Eskom Holdings SOC Ltd’s US$32bil debt pile.