Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 80
R160 002 million). Of these facilities and debt
instruments, R102 295 million (2020—
R189 354 million; 2019—R137 023 million) has been
utilised at year end. Long-term debt of R102 643
million decreased by R64 554 million compared to
2020 due to the repayment on the revolving credit
facility of R55,4 billion as well as the term loans of
R5,4 billion and the strengthening of the closing rand
exchange rate to the US dollar (R14,28 at 30 June 2021
compared to R17,33 at 30 June 2020). Refer to
“Item 18—Financial Statements—Note 17 Long-term
debt”, for a breakdown of our banking facilities and the
utilisation thereof.
Financial instruments and risk
Refer to “Item 11—Quantitative and
qualitative disclosures about market risk” for a
breakdown of our liabilities summarised by fixed and
floating interest rates.
Debt profile and covenants
The information set forth under “Item 18—
Financial Statements—Note 17 Long-term debt” is
incorporated by reference.
Capital commitments
There were no events of default for the years
ended 30 June 2021 and 30 June 2020.
Refer “Item 18—Financial Statements—
Note 20 Property, plant and equipment”.
Included in the abovementioned borrowing
facilities is our commercial paper programme of
R8 billion. There is R5,8 billion in available facilities
under the commercial paper programme at
30 June 2021. Further, a revolving credit facility (RCF)
of US$2 825 million is available to the group for
further funding requirements. Centralised treasury
facilities of R100,6 billion (US$6,9 billion and
R2,2 billion) were drawn at 30 June 2021.
The discussion below includes
forward-looking statements. For a discussion of factors
that could cause actual results to differ from those
expressed or implied in forward-looking statements,
please refer to “Forward-Looking Statements” above.
You should not place undue reliance on
forward-looking statements.
In Mozambique, since the approval of the
2015 base FDP in 2016, Sasol has been actively
pursuing the approved development activities. Nine of
the planned 13 Temane and Inhassoro development
wells were drilled between 2016 and 2018, and
additional 2D and 3D seismic data were acquired over
the Inhassoro and Pande areas in 2016. This was to
further reduce the subsurface uncertainty. Additionally,
outside of the 2015 FDP, two Pande appraisal wells
were drilled in 2018 and the Notice of Commercial
Discovery for the Pande reservoirs was issued to the
GoM for approval.
In August 2019, Sasol issued its inaugural
paper to the value of R2 176 million in the local debt
market under the current Domestic Medium Term
Note programme, at 130 basis points above threemonth Johannesburg Interbank Average Rate,
repayable in August 2022. The net proceeds from the
notes issue were used for general corporate purposes
and to refinance existing facilities.
We negotiated with our lenders to waive our
adjusted net debt to EBITDA covenant as at 30 June
2020 and, as a precautionary measure, to increase our
adjusted net debt to EBITDA covenant from 3,0 times
to 4,0 for the measurement period ended 31 December
2020. The actual ratio of adjusted net debt to EBITDA
for the measurement period ended 31 December 2020
computed to 2,6 times, meaning that we did remain
within our original covenant level. The net debt:
EBITDA ratio as at 30 June 2021 computed to 1,5
times, which again is below the original covenant level.
We have and continue to reduce the size of our
outstanding debt balances, primarily the RCF, through
asset divestments, whilst continuing to maintain a
strong liquidity position. Therefore, US$3 billion from
proceeds of asset disposals and bond issuances have
been utilised to partially repay the US$3,4 billion RCF.
The revised FDP, which includes Pande
reservoirs, was submitted to the GoM for approval and
is devised to ensure that the continued development of
the project is founded on sound economic principles,
provides an optimal economic return, maximises
government’s income from royalties, profit share and
taxes, and reduces the risk of a sub-economic
development. The revised FDP of the PSA was
approved by the GoM on 29 September 2020. The main
objectives of the revised PSA Development are to
enable CTT gas supply, ensure economic production of
the gas volumes in excess of those reserved for CTT by
selling these to Sasol, optimise LPG production,
optimise gas recovery by flexible development of gas
reservoirs to ensure optimal field development and
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