JPMorgan has urged investors to purchase Eskom bonds in South Africa before the country’s budget, which is anticipated to be released on February 22 and reveal how much of the energy utility’s debt the government is taking on.
In a note to clients, JPMorgan analyst Zafar Nazim upgraded Eskom’s 2028 government-guaranteed bonds to “overweight” and reiterated an overweight recommendation on the non-guaranteed 2023, 2025, and 2025 bonds. “Eskom should now be considered an extension of the sovereign, and bonds should trade as such,” Nazim wrote.