Eskom faces suspension if they fail to hand in report

Eskom faces suspension from JSE. File image: IOL.

Eskom faces suspension from JSE. File image: IOL.

Published Jan 16, 2018

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DURBAN - The JSE has issued a warning to those in possession of Eskom bonds, saying that it would suspend the listing of the power utility, should it not hand in its interim financial report

According to Fin24, in a note that was released on Monday morning, the JSE alleged that Eskom had failed to hand in its interidm financial report within the three-month period set by the JSE debt listing requirements. The power utility, which issues debt in both domestic and international markets, has its bonds listed on the JSE. 

The cut-off date for Eskom to submit its report is January 31, 2018, should Eskom fail to submit it by the said date, the JSE would be at liberty to suspend Eskom's debt securities. 

The issuing of the Eskom's interim results has been delayed since November last year. 

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In a December press release, Eskom announced they would be postponing the announcement of the interim results until early 2018, in order to go over the impact of the 5,23% price hike granted by the National Energy Regulator of South Africa and allow its new board go over the financials.

JSE rules do make a concession for debt issuers to produce a written letter in order to avoid suspension. 

Speaking to Fin24, the JSE’s General Manager for issuer regulation, Andre Visser, said trading could still happen pending the final verdict of the JSE. "The consequence of a suspension is that trades cannot be booked in respect of Eskom’s listed instruments and no further listed instruments may be issued in terms of their programme," Visser said. 

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Last week Eskom denied that it was facing looming bankruptcy; spokesperson Khulu Phasiwe claimed that Eskom's liquidity levels remained sufficient. 

- BUSINESS REPORT ONLINE

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