ESKOM HOLDINGS SOC LIMITED - Eskom updates financial markets

Eskom updates financial markets

Eskom Holdings SOC Limited
(Registration No. 2002/015527/30)
JSE alpha code: BIESKM
(“Eskom”)

ESKOM UPDATES FINANCIAL MARKETS

National Treasury announces debt relief measures for Eskom

Reference is made to the Budget Speech made by the Minister of Finance, Enoch
Godongwana on 22 February 2023.

Eskom welcomes the commitment made by the Government in the Budget Speech to provide
Eskom with R254 billion of debt relief, by:

   •   advancing (i) R78 billion in FY 2023/24, (ii) R66 billion in FY 2024/25, and (iii) R40
       billion in FY 2025/26, in each case in the form of subordinated, interest-free loans
       (convertible into equity) which must be used by Eskom to cover certain capital and
       interest payments on Eskom’s existing financial indebtedness; and
   •   in addition to the above, the Government directly taking over R70 billion of Eskom’s
       debt portfolio in FY 2025/26,

in each case, subject to Eskom satisfying or complying with certain conditions.

Addressing the frequency and severity of load-shedding remains a key priority for both
Eskom and the Government. The Government support package, which is structured to cover
a portion of Eskom’s debt service costs over the next 36 months (in addition to the R70 billion
debt takeover arrangement in FY 2025/26), will free up cash that would otherwise have been
required to service the group’s financial indebtedness, and allow Eskom to undertake
immediate and much-needed capital and investment programmes required to reduce load-
shedding and ensuring the long-term stability and security of electricity supply in the country.

Eskom looks forward to working closely and collaboratively with the Government on the
implementation of the Government support package thereto in the coming weeks and
months.

Departure of André De Ruyter from Eskom

Further to the announcement released on SENS on 15 December 2022, debtholders are
advised that, following the convening of a special Board meeting on 22 February 2023, the
Eskom Board and Group Chief Executive (GCE), André de Ruyter, have reached mutual
agreement to curtail his notice period to 28 February 2023.

The Eskom Board further resolved that Mr de Ruyter will not be required to serve the balance
of his notice period but that he will be released from his position with immediate effect.

Acting GCE appointment of Calib Cassim

The Eskom Board has resolved that the Chief Financial Officer (CFO), Calib Cassim will act
as GCE with full delegation of authority with immediate effect and until further notice.

Calib was appointed as Eskom’s CFO in November 2018 after serving as acting CFO from
July 2017. He is a registered Chartered Accountant (SA) and holds a master’s degree in
Business Leadership (MBL). With over 20 years of service in Eskom, his qualifications and
extensive experience have provided Calib with a deep understanding and appreciation of the
Eskom business and the electricity industry, especially with regard to the challenges facing
the financing of operations and future expansion of the industry.

Johannesburg
24 February 2023

Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 24-02-2023 09:12:00
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