Ethane Cracker US$4 Billion Credit Facility for Ethane Cracker and Derivatives Complex
Sasol secured a credit facility, backed by 18 international banks and institutions, for the extension of their Lake Charles complex.
Johannesburg/South Africa, Lake Charles/USA — Sasol secured a US$4 billion credit facility for its ethane cracker and derivatives complex at its existing site in Lake Charles, Louisiana. A syndicate of 18 international banks and other financial institutions are lenders for the credit facility.
“Securing this financing facility is another key milestone in advancing a defining project for the company,” said Paul Victor, Acting Chief Financial Officer, Sasol Limited. “The support from a large number of international financial institutions is a testament to Sasol’s strong standing within the global financial markets.”
The Bank of Tokyo-Mitsubishi UFJ, Ltd.is the administrative agent, Bank of America, N.A. is the account bank, and HSBC Bank USA, National Association is the security trustee for the credit facility. The Royal Bank of Scotland plc acted as the project’s financial advisor, and Latham & Watkins LLP served as legal advisor for the project. Skadden, Arps, Slate, Meagher & Flom LLP advised the lenders.
In October, Sasol announced its final investment decision relating to a US$8.9 billion petrochemical complex, which consists of an ethane cracker that will produce 1.5 million tons of ethylene annually. The complex will also comprise six chemical manufacturing plants, enabling infrastructure and utility improvements.
The remainder of the funds required for construction will be raised in a phased manner from a variety of potential sources, including surplus cash available in the group. Additional funding will be announced as it is secured.