South African utility Eskom Holdings Ltd. said Thursday it had secured EUR530 million from seven European banks to part-fund the construction of a new power plant.

The state-owned utility, which is raising money to increase its generating capacity, said the loan is payable over 12 years once the Medupi Power Station is commissioned.

"Our debt capital raising activities are an integral part of financing Eskom's capital expansion program and will complement other sources of funding, such as the recent government support," Eskom Chief Executive Jacob Maroga said.

The money will be used to fund some of the foreign content of a boiler contract with Hitachi Power Europe, as well as funding for infrastructure, the utility said.

The loan was signed between Eskom and HypoVereinsbank, BNP Paribas SA (BNP.FR), Calyon Credit Agricole CIB, part of Credit Agricole SA (ACA.FR), Commerzbank AG (CBK.XE), KfW IPEX-Bank, Natixis (KN.FR) and BHF-Bank.

Australia & New Zealand Banking Group Ltd. (ANZ.AU) acted as adviser to Eskom, it said.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com
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