Sasol’s wholly owned subsidiary Sasol Financing has priced an offering of $750m of US$-denominated notes due 2033, the group said on Wednesday.
The notes bear a coupon at a rate of 8.75% per annum. The final order book amounted to about $2.8bn, which represents an oversubscription of more than 3.7 times, Sasol said in a statement.
The notes are fully and unconditionally guaranteed by Sasol.
The offering is expected to close on April 10 and the proceeds will be used for repayment of existing debt and for general corporate purposes.
JPMorgan and MUFG acted as joint global coordinators and Bank of China, BofA Securities, Citigroup, Intesa Sanpaolo, Mizuho, SMBC and Standard Chartered Bank acted as joint bookrunners, it said.
Business Day reported recently that the petrochemical major’s market value has gained about R2.5bn a day since the outbreak of the war in the Middle East, which has pushed oil prices sharply higher and weakened the rand, creating fertile ground for further gains in the company’s shares.
Sasol is now valued at more than R145bn, with the share price up 115% year to date.
With Kabelo Khumalo
Business Day
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