Sasol Ltd. is preparing for South Africa’s biggest rights issue in two decades after a share-price collapse sparked by cost overruns at its U.S. chemicals project and the plunge in oil prices. The stock slumped. The company plans to raise $6 billion by the end of its 2021 financial year, including a share sale of as much as $2 billion, it said in a statement. It has entered into a standby underwriting agreement with BofA Securities, Citigroup and J.P. Morgan Securities for the rights issue. Sasol expects to comply with debt covenants relating to credit ratios by the end of the financial year June 30, assuming a prevailing rand-oil price of approximately $35.22 per barrel. It’s in discussions with lenders about “adequate flexibility” to ensure covenant thresholds are maintained.
SOURCE: BLOOMBERG
