Eskom Bonds Punished as Investors Clamor for Turnaround

Some investors are getting out of Eskom Holdings SOC Ltd. dollar bonds amid concern South Africa is taking too long to implement a turnaround plan and explain what it will do about the utility’s $30 billion of debt, Yahoo Finance reported. Yields on the struggling power company’s dollar bonds due 2025 climbed to a one-month high on Wednesday, even though the government’s 138 billion rand ($9.3 billion) bailout has bought it some time to reorganize its finances. Besides concern over the debt load, investors want to see faster progress on operational and organizational changes meant to return the company to sustainability. Plans mooted as far back as February to split Eskom into three operating units will take until the end of 2021 to be fully implemented. A new chief executive was supposed to be in place by the end of last month. Read more