MOSCOW (MRC) -- The South African chemicals company hopes to refinance its debt and fund wider commercial activities by raising USD 750 million from the bonds market, a deal on which it was supported by a US law firm.
South African chemicals company Sasol has launched a USD 750 million bond offering, said Iclg.
The Johannesburg-headquartered company said the bonds, due to mature in 2027, would be used for “general corporate purposes including, but not limited to, the refinancing of debt”. The bonds were issued on 8 November by Sasol’s subsidiary Sasol Financing USA, and are expected to be made available for trading on the Frankfurt Stock Exchange 30 days after the closing date. They will be convertible into shares in Sasol or cash.
Co-ordinator for the offering was BofA Securities, while the book-runners were Citigroup, JP Morgan and BofA Securities. Co-lead managers were Mizuho, MUFG and SMBC Nikko.
Sasol was represented on the offering by a mostly London-based team from New York-headquartered law firm Shearman & Sterling, led by partners Trevor Ingram and James Duncan, with support from Washington, DC, tax partner Kristen Garry and an associate in New York.
As per MRC, Sasol Chemicals will lease land adjacent to its plant to Hamburger Energiewerke, Hamburg’s municipal utility, which plans to build the facility by the end of 2024. When fully operational in 2025, the plant will supply at least 70,000 megawatt hours of steam to Sasol each year, enabling the company to reduce its CO2 emissions from the plant by approximately 13,000 metric tons annually. In addition to green steam, the plant will produce more than 90,000 megawatt hours of sustainable electricity annually.