Long-term debt (Tables)

12 Months Ended

Jun. 30, 2018

		2018		2017
for the year ended 30 June	Note	Rm		Rm
Total long-term debt		109 454		81 405
Short-term portion		(12 763	)	(7 093	)

		96 691		74 312

Analysis of long-term debt
At amortised cost
Secured debt		62 601		43 827
Preference shares		7 493		12 045
Finance leases		7 624		1 864
Unsecured debt		32 513		24 461
Unamortised loan costs		(777	)	(792	)

		109 454		81 405

Reconciliation
Balance at beginning of year		81 405		79 877
Loans raised		31 061		9 664
proceeds from new loans*		24 961		9 277
finance leases acquired		6 100		387
Loans repaid**		(9 199	)	(2 364	)
Interest accrued	7	878		956
Amortisation of loan costs	7	462		279
Translation effect of foreign currency loans		22		(15	)
Translation of foreign operations		4 825		(6 992	)

Balance at end of year		109 454		81 405

Interest-bearing status
Interest-bearing debt		108 017		80 352
Non-interest-bearing debt		1 437		1 053

		109 454		81 405

Maturity profile
Within one year		12 763		7 093
One to five years		72 899		58 933
More than five years		23 792		15 379

		109 454		81 405

Business segmentation
 Mining		679		1 360
 Exploration and Production International		784		755
 Energy		9 503		7 058
 Base Chemicals		33 511		21 890
 Performance Chemicals		28 119		18 037
 Group Functions		36 858		32 305

Total operations		109 454		81 405

	2018	2017
	Rm	Rm
Total long-term debt (before unamortised loan costs)***	109 984	82 261

*Loans raised to fund US growth projects.

**Mainly relates to the repayment of the Inzalo Groups debt.

***The difference in the fair value of long-term debt when compared to the carrying value is mainly due to the prevailing market price of the debt instruments.

Interest rate at

2018

2017

Terms of repayment

Security

Business

Currency

30 June 2018

Secured debt

Repayable in bi-annual instalments ending December 2021

Secured by assets under construction with a carrying value of R140 912 million (2017 – R101 039 million) and other assets with a carrying value of R24 368 million (2017 – R17 294 million)

Base and Performance Chemicals (US Operations)

US dollar

Libor + 2,25%

(1)

54 953

36 748

Repayable in quarterly instalments ending April 2021

Secured by property, plant and equipment with a carrying value of R4 551 million (2017 – R4 593 million).

Base Chemicals

US dollar

Libor + 2,5%

2 765

2 686

Repayable in bi-annual instalments ending June 2022

Secured by property, plant and equipment with a carrying value of R5 415 million (2017 – R5 888 million)

Energy (Rompco)

Rand

Jibar + 1,75%

3 473

4 148

Repayable in bi-annual instalments ending February 2030

Secured by shares, property, plant and equipment with a carrying value of R1 443 million

Energy (CTRG)

US dollar

Jibar + 5,5%

1 183

—

Various

227

245

62 601

43 827

Preference shares

A preference shares repayable in semi-annual instalments between June 2008 and September 2018(2)

Secured by Sasol preferred ordinary shares held by the company

Group Functions (Inzalo)

Rand

Fixed 11,1%

828

1 471

B preference shares repayable between June 2008 and September 2018(2)

Secured by Sasol preferred ordinary shares held by the company

Group Functions (Inzalo)

Rand

Fixed 13,3%

789

1 164

C preference shares repayable September 2018(2)

Secured by guarantee from Sasol Limited

Group Functions (Inzalo)

Rand

Variable 68% of prime

5 822

9 247

A preference shares repayable between March 2013 and September 2018(3)

Secured by preference shares held in Sasol Mining (Pty) Ltd

Mining (Ixia)

Rand

Fixed 10,0%

163

7 493

12 045

(1)

The Libor exposure for approximately 50% of the debt profile is hedged using an interest rate swap, under which the variable rate is swapped for a fixed rate. Refer to note 40.

(2)

A, B and C preference share debt was raised within structured entities as part of the Sasol Inzalo share transaction (refer to note 35.1).

The Sasol Inzalo Public transaction will unwind in September 2018. The A and B preference shares are secured by rights over the Sasol Limited preferred ordinary shares held in the Inzalo Public entities. It is expected that the A, B and C preference share debt will be settled by Sasol as a repurchase of shares in the Inzalo Public entities. The estimated required share price at that point, to create value for the Inzalo Public participants, is R462.

(3)

Preference share debt was raised in 2011 within structured entities as part of the Sasol Ixia Coal broad-based black economic empowerment transaction. Dividends and the principal amount on these preference shares are payable on maturity between March 2013 and October 2018. The preference shares are secured by preference shares held in Sasol Mining (Pty) Ltd, a subsidiary of Sasol Mining Holdings (Pty) Ltd. These preference shares may not be disposed of or encumbered in any way.

Interest rate at

2018

2017

Terms of repayment

Security

Business

Currency

30 June 2018

Finance leases(4)

Repayable in monthly instalments over 15 to 40 years ending December 2056

Secured by plant and with a carrying value R7 541 million (2017 – R1 955 million)

Energy,Base and Performance Chemicals

Various

Fixed 4,0% to 16,6% and variable 8,2% to 13,3%

7 521

1 730

Other finance leases

Underlying assets

Various

103

134

7 624

1 864

77 718

57 736

(4)

The increase in finance leases mainly relate to:

Air Liquide: We have entered into a lease agreement for an Air Separation Unit, built and owned by Air Liquide. The finance lease was capitalised on 1 January 2018 at R3,4 billion.

Lake Charles Chemicals Project: We entered into rail yard and wash bay lease agreements to support our Lake Charles Chemicals Project rail operations. The leases were capitalised in December 2017 and April 2018 respectively. The finance lease assets capitalised was R1,8 billion.

			Interest rate at	2018		2017
Terms of repayment	Business	Currency	30 June 2018	Rm		Rm
Unsecured debt
Various repayment terms ending June 2029	Various	Various	Various	1 567		1 773
Repayable in July 2018	Exploration and Production International	Canadian dollar	—	784		755
Various repayment terms	Energy	Rand	Fixed 8,0%	523		397
Various repayment terms from December 2018 to November 2024(5)	Group Functions (Sasol Financing)	US dollar	Fixed 4,5% and variable Libor + 1% to 1,50%	29 014		20 336
Repayable in bi-annual instalments ending December 2018	Mining	Rand	Jibar + 1,25%	625		1 200

Total unsecured debt				32 513		24 461

Total long-term debt				110 231		82 197
Unamortised loan costs (amortised over period of debt using the effective interest rate method)				(777	)	(792	)
				109 454		81 405
Short-term portion of long-term debt				(12 763	)	(7 093	)

				96 691		74 312

(5)

Included in this amount is the US$1 billion (R13 billion) bond, with a fixed interest rate of 4,5% which is listed on the New York Stock Exchange and is recognised in Sasol Financing International Limited, a 100% owned subsidiary of the group. Sasol Limited has fully and unconditionally guaranteed the bond. There are no restrictions on the ability of Sasol Limited to obtain funds from the finance subsidiary by dividend or loan.

Schedule of Lake Charles Chemicals Project funding profile

	Total
	facilities	Cash utilised	Remaining	Rand
at 30 June 2018	US$m	US$m	US$m	equivalent
Lake Charles Chemicals Project funding profile
Term loan	3 995	3 995	—	—
Available cash, cash flow from operations and general borrowings	7 135	5 243	1 892	25 977

Total funding requirement	11 130	9 238	1 892	25 977

Schedule of liquidity available from borrowings


				Total
			Contract	Rand	Utilised	Available
			amount	equivalent	facilities	facilities
30 June 2018	Expiry date	Currency	million	Rm	Rm	Rm
Banking facilities and debt arrangements
Group treasury facilities
Commercial paper (uncommitted)	None	Rand	8 000	8 000	—	8 000
Commercial banking facilities	Various	Rand	5 900	5 900	1 719	4 181
Commercial banking facilities	Various	US dollar	250	3 432	2 059	1 373
Revolving credit facility	November 2024	US dollar	3 900	53 537	13 041	40 496
Debt arrangements
US Dollar Bond	November 2022	US dollar	1 000	13 728	13 728	—
Other Sasol businesses
Specific project asset finance
US Operations (funding of LCCP)	December 2021	US dollar	3 995	54 841	54 841	—
US Operations (Letter of credit for LCCP)	December 2021	US dollar	45	618	—	618
Energy — Republic of Mozambique Pipeline Investments Company (Rompco)	June 2022	Rand	2 511	2 511	2 511	—
Energy — Republic of Mozambique Pipeline Investments Company (Rompco)	December 2019	Rand	952	952	952	—
Base Chemicals — High-density polyethylene plant	July 2028	US dollar	202	2 732	2 732	—
Mining — Mine replacement programme	December 2018	Rand	625	625	625	—
Energy — Clean Fuels II (Natref)	Various	Rand	1 409	1 409	1 409	—
Debt arrangements
Sasol Inzalo (preference shares)	September 2018	Rand	5 649	5 649	5 649	—
Mining preference shares	October 2018	Rand	53	53	53	—
Other debt arrangements		Various	—	—	10 515	—

					109 834	54 668

Available cash						15 059

Total funds available for use						69 727

Total utilised facilities						109 834
Accrued interest						878
Unamortised loan cost						777

Total debt including accrued interest and unamortised loan cost						111 489

Comprising
Long-term debt						96 691
Short-term debt						14 709
Short-term debt						1 946
Short-term portion of long-term debt						12 763
Bank overdraft						89

						111 489