https://www.engineeringnews.co.za

Sasol secures $1.8bn for Lake Charles project

Sasol's Lake Charles Chemical Project

Sasol's Lake Charles Chemical Project

7th June 2019

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

JSE-listed petrochemicals company Sasol announced on Friday that its subsidiary Sasol Financing USA had entered into new US dollar-denominated senior unsecured credit facilities, comprising a $1.6-billion term loan facility and a $150-million revolving credit facility.

The facilities have a tenor of five years and will be used to refinance the outstanding Lake Charles Chemical Project (LCCP) asset finance loan.

Bank of America Merrill Lynch, Mizuho Bank and Sumitomo Mitsui Banking Corporation were mandated as global coordinators, bookrunners and mandated lead arrangers for the transaction, which was syndicated to a targeted group of relationship banks.

Along with the bookrunners, there were two other mandated lead arrangers – BNP Paribas and Industrial and the Commercial Bank of China’s London branch.

Bank of China’s Johannesburg branch, China Construction Bank’s Johannesburg branch, Citibank, Intesa Sanpaolo’s New York branch, JP Morgan Securities and Mitsubishi UFJ Financial Group joined as lead arrangers.

Rothschild & Co and Identity Advisory acted as independent financial advisers to Sasol in respect of the transaction.

Engineering News Online last month reported that Sasol had announced another large increase in the capital cost of the LCCP, in Louisiana, in the US, and that it would accelerate its $2-billion noncore asset disposal programme and use the proceeds to deleverage its balance sheet.

Joint president and CEO Bongani Nqwababa had said, at the time, that the JSE-listed group was “extremely disappointed” in having to confirm a further upward revision to the capital cost of the LCCP project, which was now expected to be between $12.6-billion and $12.9-billion.

In 2014, the group had said the Louisiana project would cost $8.9-billion to build, but there have been several cost revisions since, the latest being in February, when Sasol provided a cost-to-completion range of between $11.6-billion and $11.8-billion.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.055 1.125s - 155pq - 2rq
Subscribe Now