ICBC contributes to a $1.65 billion USD syndicated term loan of a $1.8 billion USD syndicated loan to SASOL for the Lake Charles Chemical Refinancing Project

Project narrative

On June 7, 2019, a syndicate of 11 banks — including the Johannesburg Branch of the Bank of China (BOC), the Johannesburg Branch of China Construction Bank (CCB), and the London Branch of the Industrial and Commercial Bank of China (ICBC) — signed a $1.8 billion USD syndicated credit facility agreement with SASOL — a South African chemical and energy company — for the Lake Charles Chemical Project. The $1.8 billion USD credit facility is comprised of a $1.65 billion USD syndicated term loan and a US$150 million revolving credit facility (RCF). Both facilities carried a tenor of five years. The syndicate was composed of Bank of America, Mizuho Bank and SMBC (global coordinators, bookrunners, and mandated lead arrangers), BNP Paribas and ICBC (mandated lead arrangers), and BOC, CCB, Citibank, Intesa Sanpaolo, and JP Morgan (lead arrangers). Record ID#86971 captures the commitment of BOC to the $150 million USD revolving credit facility tranche. Record ID#100684 captures the commitment of CCB to the $150 million USD revolving credit facility tranche. Record ID#100685 captures the commitment of ICBC to the $150 million USD revolving credit facility tranche. Record ID#86969 captures the commitment of BOC to the $1.65 billion USD term loan tranche. Record ID#100681 captures the commitment of CCB to the $1.65 billion USD term loan tranche. Record ID#100683 captures the commitment of ICBC to the $1.65 billion USD term loan tranche. The purpose of the loan is to refinance in full the outstanding Lake Charles Chemical Project asset finance loan. The Lake Charles Project is located in Louisiana, USA, and is an undertaking by Sasol Financing that recently grew in cost. As of 2019, the project has an estimated capital cost of $11.6-11.8 billion USD. When built, it will be an integrated ethane cracker and downstream derivatives complex. The project has been fully commissioned and has started up. As of the end of December 2018, engineering and procurement activities were substantially complete, and construction progress was at 84%. In November 2020, the Lake Charles Chemical Complex is completed, and the final cost of the whole project was US$12.9 billion. It can produce up to 420,000 tons of polyethylene each year using technology developed by Exxon Mobil. The Lake Charles Chemical Complex is composed of two operating entities: Sasol’s Lake Charles East Plant and Sasol’s Lake Charles West Plant. In October 2021, SASOL announced that it has begun an ethylene and steam turnaround at the Lake Charles Chemical Complex East Plant.