Loading

Sasol plans bond sale to lower cost of plants

September 12 2012 at 08:00am
By Bloomberg

Comment on this story

Bloomberg

Sasol is planning its first sale of dollar bonds to lower the cost of gas-to-liquid (GTL) plants it is considering building in the US and Canada

.

The company was planning to raise debt to as much as 40 percent of equity within three to five years, from 2.7 percent at the end of June, Sasol spokesman Alex Anderson said yesterday.

Yields on the safest US and European debt have dropped on speculation that borrowing costs will stay at record lows as the global economic outlook worsens, giving local firms the chance to raise money at cheaper rates than at home.

The rate on South African company dollar debt has fallen 160 basis points this year to 4.48 percent, according to JPMorgan Chase’s corporate emerging markets bond index. “It makes perfect sense,” said Avior Research analyst David Lerche.

Sasol operates in 38 countries and uses proprietary Fischer-Tropsch technology to make petrol, diesel and jet fuel from coal and gas. Sasol, which invested R29.2 billion in capital projects during the year, had not determined how much money it would raise or when the process would begin, said chief financial officer Christine Ramon. Sasol dropped 1.61 percent to close at R377.50 on the JSE yesterday.


sign up
 
 

Comment Guidelines


  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

 IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks
IOL Travel

Make sure you find the best available airfares with our easy-to-use search engine.

Travel_pic_enw
Sudoku