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Long-term debt
 12 Months Ended
Jun. 30, 2024
Long-term debt.  
Long-term debt

FUNDING ACTIVITIES AND FACILITIES

13

Long-term debt

​

​

​

​

​

​

​

    

2024

    

2023

for the year ended 30 June

​

Rm

​

Rm

Total long-term debt

​

117 031

 

124 068

Short-term portion*

​

(1 118)

 

(41 749)

Long-term portion*

​

115 913

 

82 319

Analysis of long-term debt

​

​

 

  

At amortised cost

​

​

​

​

Secured debt

​

—

 

29

Unsecured debt

​

117 559

 

124 742

Unamortised loan costs

​

(528)

 

(703)

​

​

117 031

 

124 068

Reconciliation

​

​

 

  

Balance at beginning of year

​

124 068

 

104 834

Loans raised1

​

30 692

 

92 946

Loans repaid2

​

(35 468)

 

(91 564)

Interest accrued

​

1 551

 

1 673

Amortisation of loan costs

​

161

 

212

Amortisation of loan modification

​

—

​

(194)

Translation of foreign operations

​

(3 973)

 

16 161

Balance at end of year

​

117 031

 

124 068

Interest-bearing status

​

​

 

  

Interest-bearing debt

​

117 031

 

124 068

Maturity profile

​

​

 

  

Within one year*

​

1 118

 

41 749

One to five years*

​

99 671

 

32 747

More than five years

​

16 242

 

49 572

​

​

117 031

 

124 068

*

The Group has revised long-term debt and short-term portion of long-term debt by R11 985 million for June 2023, refer note 1.1. Previously, amounts of R29,8 billion and R44,7 billion were included in the within one year and one to five years categories respectively.

1In October 2023, Sasol issued senior unsecured notes to the value of R2 368 million in the local debt market under the R15 billion Domestic Medium Term Note (DMTN) programme, and in March 2024 R27 billion (US$1,5 billion) was drawn on the Revolving Credit Facility (RCF). 2023 relates mainly to the drawdown on the previous RCF of R26,7 billion (US$1,5 billion), R2,1 billion raised under the new DMTN programme, the issue of a R13,2 billion (US$750 million) convertible bond, R35,5 billion (US$2 billion) drawdown on the new RCF and term loan and R17,8 billion (US$1 billion) bonds issued in May 2023. R11,1 billion proceeds from the convertible bond was included in long-term debt and R2,1 billion was included in long-term financial liabilities in 2023. Refer to note 36.
22024 relates mainly to the US$1,5 billion (R28 billion) US Dollar bond that was repaid in March 2024, as well as partial settlements of R5,5 billion (US$0,3 billion) in May and June 2024 on the RCF. 2023 relates mainly to the repayment of the previous RCF and term loan of R53,9 billion (US$3,0 billion), repayment of R2,2 billion on the previous DMTN, repayment of R17,8 billion on the US$1 billion bond, as well as repayment of R17,8 billion (US$1 billion) on the new RCF.

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13

Long-term debt continued

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​

2024

​

2023

​

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​

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Total 

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​

​

​

​

​

​

​

​

​

​

​

​

Interest

​

Contract

​

Rand 

​

Available

​

Utilised

​

Utilised

​

​

​

​

​

​

​

rate

​

amount

​

equivalent

​

facilities

​

 facilities

​

facilities

​

for the year ended 30 June

    

Expiry date

    

Currency

    

%

    

million

    

Rm

    

Rm

    

Rm

    

Rm

​

Banking facilities and debt arrangements

​

  

​

  

​

​

​

  

​

  

​

  

​

  

​

  

​

Group treasury facilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial paper (uncommitted)1

 

None

 

Rand

 

3 month
Jibar + 1,42% -
1,59%

​

15 000

 

15 000

 

10 566

​

4 434

 

2 066

​

Commercial banking facilities

 

None

 

Rand

 

**

​

8 150

 

8 150

 

8 150

​

—

 

—

​

Revolving credit facility2

 

April 2029

 

US dollar

 

SOFR+ Credit
Adj +1,45%

​

1 987

 

36 148

 

14 317

​

21 831

 

—

​

Debt arrangements

 

​

 

​

 

​

​

​

 

​

​

​

​

​

 

​

​

US Dollar Bond3

 

March 2024

 

US dollar

 

5,88%

​

—

 

—

 

—

​

—

 

28 245

​

US Dollar Bond3

 

September 2026

 

US dollar

 

4,38%

​

650

​

11 825

​

—

​

11 825

 

12 240

​

US Dollar Convertible Bond4

​

November 2027

​

US dollar

​

4,50%

​

750

 

13 644

 

—

​

13 644

​

14 123

​

US Dollar term loan

 

April 2029

 

US dollar

 

SOFR+ Credit
Adj +1,65%

​

982

​

17 874

​

—

​

17 874

 

18 499

​

US Dollar Bond3

​

September 2028

​

US dollar

​

6,50%

​

750

​

13 644

​

—

​

13 644

​

14 123

​

US Dollar Bond3

 

May 2029

 

US dollar

 

8,75%

​

1 000

​

18 193

​

—

​

18 193

 

18 830

​

US Dollar Bond3

​

March 2031

​

US dollar

​

5,50%

​

850

​

15 464

​

—

​

15 464

​

16 006

​

Other Sasol businesses

 

  

 

  

 

​

​

  

 

  

 

  

​

  

 

  

​

Specific project asset finance

 

  

 

  

 

​

​

  

 

  

 

  

​

  

 

  

​

Energy — Clean Fuels II (Natref)

 

Various

 

Rand

 

Various

​

966

 

966

 

—

​

966

 

901

​

Debt arrangements

 

  

 

  

 

​

​

  

 

  

 

  

​

  

 

  

​

Other debt arrangements Various

 

​

 

​

​

Various

​

—

 

—

 

—

​

909

 

472

​

​

 

​

​

​

​

​

​

​

​

​

​

33 033

​

118 784

 

125 505

​

Available cash excluding restricted cash

 

​

 

  

 

​

​

  

 

  

 

42 846

​

  

 

​

​

Total funds available for use

 

​

 

  

 

​

​

  

 

  

 

75 879

​

  

 

​

​

Accrued interest

 

​

 

  

 

​

​

  

 

  

 

​

​

1 551

 

1 673

​

Unamortised loan cost

 

​

 

  

 

​

​

  

 

  

 

​

​

(528)

 

(703)

​

Cumulative fair value gains and foreign exchange movements on convertible bond embedded derivative financial liability

​

​

​

​

​

​

​

​

​

​

​

​

​

(2 030)

​

(867)

​

Total debt including accrued interest and unamortised loan cost

 

​

 

  

 

​

​

  

 

  

 

​

​

117 777

 

125 608

​

Comprising

 

​

 

  

 

​

​

  

 

  

 

​

​

  

 

  

​

Long-term debt*

 

​

 

  

 

​

​

  

 

  

 

​

​

115 913

 

82 319

​

Short-term debt*

 

​

 

  

 

​

​

  

 

  

 

​

​

1 684

 

41 828

​

Short-term debt

 

​

 

  

 

​

​

  

 

  

 

​

​

566

 

79

​

Short-term portion of long-term debt

 

​

 

  

 

​

​

  

 

  

 

​

​

1 118

 

41 749

​

Bank overdraft

 

​

 

  

 

​

​

  

 

  

 

​

​

121

 

159

​

Convertible bond derivative financial liability

​

​

​

​

​

​

​

​

​

​

​

​

​

59

​

1 302

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

117 777

​

125 608

​

*

The Group has revised long-term debt and short-term portion of long-term debt by R11 985 million for June 2023, refer note 1.1.

​

13

Long-term debt continued

**Interest rate only available when funds are utilised.

1Sasol has issued two tranches under the R15 billion DMTN programme, R2 066 million in October 2022 and R2 368 million in October 2023.
2In March 2024 R27 billion (US$1,5 billion) was drawn on the Revolving Credit Facility (RCF), while partial settlements of R5,5 billion (US$0,3 billion) were made in May and June 2024 on the RCF.
3Included in this amount is the US$3,25 billion (R59,1 billion) bonds with fixed interest rates of between 4,38% and 8,75% which are listed on the New York Stock Exchange and is recognised in Sasol Financing USA LLC (SFUSA), a 100% owned subsidiary of the Group. Sasol Limited has fully and unconditionally guaranteed the bonds. There are no restrictions on the ability of Sasol Limited to obtain funds from the finance subsidiary, SFUSA, by dividend or loan.
4The convertible bonds have a principal amount of US$750 million and contain conversion rights exercisable by the bond holders at any time before maturity of the bond on 8 November 2027. The convertible bonds pay a coupon of 4,5% per annum, payable semi-annually in arrears and in equal instalments on 8 May and 8 November of each year. The requisite approval for the convertible bonds to be capable of being convertible into Sasol ordinary shares was obtained at a general meeting of the shareholders of the Company on 17 November 2023. The convertible bonds can now be settled in cash, Sasol ordinary shares, or any combination thereof at the election of Sasol. The conversion price (initially set at US$20,39) is subject to standard market anti-dilution adjustments, including, among other things, dividends paid by Sasol. The conversion price at 30 June 2024 was US$18,79 (30 June 2023: US$19,86).

Accounting policies:

Debt, which constitutes a financial liability, includes short-term and long-term debt. Debt is initially recognised at fair value, net of transaction costs incurred and is subsequently stated at amortised cost using the effective interest rate method. Debt is classified as short-term unless the borrowing entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Debt is derecognised when the obligation in the contract is discharged, cancelled or has expired. Premiums or discounts arising from the difference between the fair value of debt raised and the amount repayable at maturity date are charged to the income statement as finance expenses based on the effective interest rate method. A debt modification gain or loss is recognised immediately when a debt measured at amortised cost has been modified. The convertible bonds are hybrid financial instruments consisting of a non-derivative host representing the obligation to make interest payments and to deliver cash to the holder on redemption of the bond (‘the bond component’); and a conversion feature which is accounted for as an embedded derivative financial liability. The bond component was recognised at fair value at inception date. The fair value was determined by subtracting the fair value attributable to the embedded derivative from the fair value of the combined instrument. The bond component is measured subsequently at amortised cost using the effective interest rate of 8,5%. The option component is recognised as a derivative financial liability, measured at fair value, with changes in fair value recorded in profit or loss and reported separately in the statement of financial position in long-term financial liabilities.

The bond component and related embedded derivative are classified as non-current liabilities due to Sasol’s ability to transfer its own equity to settle the debt if called by the counterparty before the contractual maturity.

Refer to note 36 for the accounting policies relating to embedded derivatives.