Dewey, Linklaters and Slaughters handle Eskom’s $1.75bn bond offer

Dewey & LeBoeuf, ­Linklaters and Slaughter and May have all advised on South African state-owned electricity utility Eskom Holdings’ $1.75bn (£1.11bn) bond offer.

Joe Ferraro
Joe Ferraro

Dewey advised Eskom on US, UK and South African law aspects, with London partner Joe Ferraro leading. He was assisted in London by local partner PK Paran and associates Jason McCann, Patrick Lyons and Nick Quarrie.

In Johannesburg Rajen Ranchhoojee was the local partner running the deal, with assistance from associates Yushanta Kandasmy and Jonathan Behr.

In New York Joseph Tato, chair of Dewey’s Africa ­practice, was in charge along with fellow partner Arthur Lynch. Tato is the firm’s Eskom relationship partner.

Linklaters acted for lead managers Barclays, Merrill Lynch and JPMorgan.

Tom O’Neill, a New York-­qualified capital ­markets partner in London, led on the deal, along with capital markets partner Keith Thomson.

Slaughters advised the trustee bank Citibank, with London partner Matthew Tobin acting as trustee counsel.

According to Eskom, demand exceeded supply by two and a half times for the 10-year, senior unsecured and unguaranteed 5.75 per cent notes. The offer closed on 26 January and was Eskom’s first dollar bond issue.

Money received from the offer will be invested in ways to increase Eskom’s ­generation and transmission capabilities, as well as for general working capital.

Eskom has warned of impending shortages of power in South Africa, as the company expects to have to operate at near-capacity during the next winter.