Eskom Holdings SOC Ltd.'s dollar bonds have experienced a significant boost in investor confidence following South Africa's recent credit-outlook upgrade.
The premium on government-backed bonds has reached its lowest level since trading began in 2018, indicating a positive change in market sentiment.
This positive shift is attributed to improved operational stability at Eskom and ongoing support from the South African government.
Consequently, the perceived risk associated with Eskom's debt has decreased, making these securities more appealing to investors.