Eskom has announced the successful redemption of its ES26 bond, marking a decisive milestone in the utility’s journey toward financial independence. First issued in March 2007 as a R500 million tranche at a coupon of 7.85%, the ES26 bond grew to an outstanding amount of approximately R38 billion over its 19-year tenure, reflecting strong and sustained investor support.
“The redemption of the ES26 bond is a testament to the utility’s turnaround trajectory and our commitment to rigorous financial governance. This achievement is a result of the structured support provided under the Debt Relief Act, integrated with our significantly improved year-on-year financial performance. By adhering to these debt relief conditions, we are fostering a more predictable and stable investment environment. This fiscal discipline is a critical lever for sustainability and it ensures that Eskom can continue to honour its obligations without placing an unsustainable burden on the government,” said Eskom Group Chief Executive, Dan Marokane.
The growth of the ES26 bond was achieved through 30 public auctions, which collectively raised approximately R9 billion. The remaining balance was raised through reverse enquiries and liability management issuance, demonstrating flexible execution and continued investor appetite for Eskom debt instruments. In total, 53 tranches of the ES26 bond were listed, reinforcing its role as a long-duration benchmark instrument in the domestic bond market. This innovation was formally recognized in 2007 when the bond received the JSE Spire Award for Best Bond Issue, underscoring its importance to the broader South African capital markets.
This redemption represents a structural win for the South African economy. By honouring this large-scale commitment, Eskom is actively reducing its risk premium, which lowers the interest rates the utility pays on future borrowing.
While celebrating this achievement, Eskom remains focused on navigating the headwinds arising from ongoing energy sector reforms. The utility continues to prioritise revenue collection and operational efficiency to ensure that today’s financial milestone translates into a stable and affordable energy future for all South Africans.