S.Africa's Eskom bond 2.5 times oversubscribed

South African utility Eskom said on Thursday a 10-year, $1.75 billion international bond launched this week with a 5.75 percent coupon was more than 2-1/2 times oversubscribed.

The state-owned electricity firm has been under pressure for several years to raise money to build new power stations after a near-collapse of the grid in 2008 that hit Africa's biggest economy hard.

The proceeds will be used to fund our committed capital expansion programme and so help to keep the lights on for all South Africans, chief executive Brian Dames said in a statement.

The bond is Eskom's first dollar-denominated issue. It floated a 500 million euro 7-year bond in 2006 that is now yielding 4.051 percent.

Dames described the 5.75 percent coupon as extremely attractive, and within a cost-of-funding target set by the industry's regulator.