“The PIC must ensure that the expected dividend earnings will be reasonably higher than the current interest earned on their loans,” Masondo told the City Press newspaper. “Eskom must meet certain conditions if converting PIC debt to equity is to be successful and sustainable.”
Eskom, which supplies almost all of South Africa’s power, has about 450 billion rand in debt and its revenue doesn’t match service costs. A proposal that the fund manager, which manages over 2 trillion rand, take a stake in the utility, was submitted to treasury this year, the PIC chairman Reuel Khoza said in June.
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