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Tuesday, November 11, 2008.

From Creamer Media in Johannesburg, I’m Shannon O’Donnell.

Making headlines today:

State-owned electricity producer Eskom signed a 500-million dollar, 20-year loan with the African Development Bank. This is part of its capital raising plans to fund its 343-billion rand investment programme.

This is the largest ever loan granted by the private sector division of the AfDB. It comes at a time when the utility is finding it increasingly difficult to lock-in foreign capital. It is intensifying its capital raising activities closer to home.

Eskom financial director Bongani Nqwababa says that the next five years remain critical for Eskom through its capital expansion programme to contribute and provide a broader platform for a striving South African economy. He said that the utility is likely to be in this expansion phase for the next two decades.

Eskom CEO Jacob Maroga said that he hoped that this loan agreement was the start of a longer partnership between the two entities.

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The National Treasury said that ratings agency Fitch’s decision to revise South Africa’s rating outlook was unlikely to result in the downgrade of the country’s credit rating.

This comes as Fitch revised the country’s ratings outlook from stable to negative. This is part of a global review of sovereign ratings of 17 major investment-grade emerging market economies.

In June, Fitch revised South Africa’s outlook from positive to stable.

Fitch affirmed South Africa’s long-term foreign currency ratings of BBB+, and the outlook revision did not constitute a rating downgrade.

Also making headlines:

Telkom is to buy MWEB Africa for 610-million rand.
PPC’s profit rises to 1,49-billion rand, but volumes are down.
The African Development Bank cuts Africa GDP forecast as the crisis bites.
And, Altech has been allowed to intervene in the MTN-Verizon SA merger.

That’s a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.