Eskom to look at Islamic bonds for funding

<p>South African power utility Eskom will look at new funding opportunities such as Islamic bonds to finance its capacity expansion projects. A lower than hoped for rise in power rates has left state-owned Eskom with an expected revenue gap of 225 billion rand ($22 billion) over the next five years. The associated decrease in projected revenues will materially affect operations, including ability to obtain funding for future capacity expansi&oacute;n. Funding for the next 12 to 18 months would be sourced from issuance of domestic and international bonds, export credit agency-backed financing, development finance institutions and the domestic commercial paper market. New opportunities from alternative funding sources and products such as Islamic funding (sukuk), preference share-type funding and project-based funding will also be explored.</p>
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<p><a href="http://www.iol.co.za/business/companies/eskom-to-look-at-islamic-bonds-for-funding-1.1544852#.Ud2gRG3Dn4w" title="http://www.iol.co.za/business/companies/eskom-to-look-at-islamic-bonds-for-funding-1.1544852#.Ud2gRG3Dn4w">http://www.iol.co.za/business/companies/eskom-to-look-at-islamic-bonds-f…</a></p>
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