Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 150
1
2
3
4
SASOL LIMITED COMPANY
Notes to the financial statements continued
6
Long-term financial liabilities continued
2021
Rm
2020
Rm
734
1 328
Measurement of long-term financial guarantees
Initial fair value is calculated by reference to the expected loss model where three factors are
considered:
The notional amount of the guarantee, the probability of default and the loss given default. A
premium of WACC is then applied to determine the minimum level of return required. Subsequently
at each reporting period the financial guarantee contract is measured at the higher of the amount
initially recognised less cumulative adjustments relating to amortisation; and expected credit loss.
Refer to note 23 for details on expected credit loss.
The long-term financial liabilities consist of guarantees issued for related party debt:
2021
2020
Maximum
exposure
Rm
Liability
included in
statement
of financial
position
Rm
Maximum
exposure
Rm
Liability
included in
statement
of financial
position
Rm
7 740
22 869
21 749
14 325
–
10 892
9 399
12 331
2 000
2 856
2 500
3 000
2 448
–
2 191
1 000
–
1 000
365
32
21
23
177
161
39
–
195
27
36
5
8
7
8
8
–
6
22
–
3
8
1
–
67 336
31 214
26 388
17 428
17 362
13 215
–
–
6 507
3 465
3 000
3 000
2 713
2 604
2 197
1 213
1 030
1 000
432
64
25
285
287
267
82
52
270
–
–
19
10
9
9
8
8
9
4
3
3
2
1
–
116 718
734
200 193
1 328
Financial guarantees
Revolving credit facility – various banks¹
Bank of America Merril Lynch³
US Bond Holders (2024 Notes)²
US Bond Holders (2022 Notes)⁴
Bank of America Merril Lynch³
US Bond Holders (2028 Notes)²
US Bond Holders (2026 Notes)²
US Bond Holders (2031 Notes)²
ABSA Bank Limited – banking facility⁵
Citibank⁶
Nedbank Limited – banking facility⁵
FirstRand Bank Limited – banking facility⁵
Eskom Holdings Limited⁷
Mizuho Bank of Europe N.V⁸
Noteholders of Commercial Paper⁹
Saudi Aramco¹⁰
The Standard Bank of South Africa Limited – banking facility⁵
Investec Bank Limited – banking facility⁵
ABSA Bank Limited – Natref debt¹¹
Nedbank Limited – Natref debt¹¹
Nedbank Limited – Sasol Oil¹²
1
Guarantee issued to various banks over the joint revolving credit facility of Sasol Financing International Limited, Sasol Financing Limited and
Sasol Financing (USA) LLC maximum exposure amounting to US$542 million.
2 Guarantees issued for the US$ bonds issued by Sasol Financing (USA) LLC, maximum exposure of US$3 807 million including accrued interest of
US$57 million. The 2026 and 2031 notes were issued on 18 March 2021.
3 Guarantees issued to Bank of America Merril Lynch over the term loan of Sasol Financing (USA) LLC, maximum exposure amounting to
US$1 601 million including accrued interest of US$1 million. The syndicated loan was fully settled in December 2020 and Sasol Limited was
released from the guarantee.
4 Guarantee issued for the US$ bond issued by Sasol Financing International Limited, maximum exposure US$1 003 million including accrued interest
of US$3 million.
5 Sasol Limited has issued guarantees of R8 500 million to various banks in relation to central treasury credit facilities available to Sasol Financing
Limited. The Standard Bank credit facility was fully repaid and the guarantee will be cancelled in due course.
6 Guarantee issued to Citibank over the joint Letter of Credit facility of Sasol Financing International Limited and Sasol International Services Limited,
maximum exposure of US$200 million.
7 Sasol Limited issued a number of guarantees on behalf of Sasol South Africa Limited to Eskom relating to the construction of power substations
and a financial guarantee of R1 786 million over the Eskom electricity account.
8 Sasol was released from the guarantee issued to Mizuho Bank Europe N.V over the Credit facility of Sasol Financing International Limited, as the
loan was fully settled on 21 February 2021.
9 Guarantee of paper to the value of R2 176 million issued in the local debt market under the current Domestic Medium Term Note (DMTN)
programme.
10 Guarantee issued on behalf of Sasol Oil, who took over the guaranteed party from Sasol International Services Limited, maximum exposure
amounting to US$70 million.
11 Guarantee issued over the debt of National Petroleum Refiners of South Africa (Pty) Ltd.
12 Guarantee issued over the debt of Sasol Oil (Pty) Ltd.
148
Sasol Annual Financial Statements 2021