JSE could suspend Eskom’s bonds due to no interim results

ESKOM’S bonds face suspension on the JSE because the state-owned power utility has failed to publish its interim results, the bourse said yesterday morning.

The JSE’s rules require companies whose shares or bonds trade on its systems to produce financial results every six months.

Eskom’s interim results for the six months to endSeptember needed to be published by December 31 to meet the JSE’s rules.

“Accordingly, this announcement is issued to warn holders of debt securities [that] if the issuer fails to submit its interim report on or before January 31, the issuer’s debt securities and the issuer’s registration of the programme memorandum may be suspended in accordance with the provisions of the JSE’s debt listings requirements,” the bourse said.

Eskom warned its bondholders on December 23 that it was postponing releasing its results “until early next year in order to afford us the opportunity to review the impact of the 5.23% price increase, as well as to allow the newly appointed board members sufficient time to review the financials”.

“Eskom will release the results as soon as possible to ensure effective business continuity,” acting chief financial officer Calib Cassim said.

In November, Moody’s cut the credit rating of Eskom’s bonds to its third rung of junk of Ba3 and S&P Global Ratings to its sixth level of junk rating, B-. —