sasol fi nancing Securing competitive funding Managing risks Confirming our credit ratings Continuous improvement Repaying our Eurobond Facilitating new projects 70 In 2010, in line with the group’s shared  value of continuous improvement, Sasol  Financing upgraded its SAP treasury risk  management system to allow for  improved efficiencies and controls. At the end of the 2010 fi nancial year,  Sasol Financing’s fi ve-year,  € 300 million  Sasol Financing is a specialist business  partner to group and joint-venture  companies, providing assistance and  guidance to best meet their funding  In December 2009, Sasol Financing  assisted Sasol Oil and Total, the  shareholders of the Sasolburg crude oil  refinery, Natref, in concluding a ten-year  financing facility. The R735 million facility  has been provided by Nedbank. It will be  used to upgrade the dispatch area, carry  out phases one and two of the hydro- fluoride-alky unit risk mitigation project,  as well as to increase the capacity of the  diesel unifiner unit. Most of these projects,  which meet the group’s strategic goal of  nurturing its existing assets, will be  completed during 2011. Sasol’s corporate global credit ratings have  been reviewed and confirmed by Moody’s  and by Standard and Poor’s at Baa1/ stable/P-2 and BBB+/Negative/A-2,  respectively. Our ratings have been  retained at investment grade throughout  the global economic crisis. In June 2010, Sasol Financing secured  a US$300 million multi-currency revolving  credit facility from China Construction  Bank at competitive terms. This facility  is for global general corporate purposes  and has a tenor of three years, with two  extension options of a year each.  The facility replaces the  € 400 million,  fi ve-year syndicated revolving credit  facility which expired in May 2010.  Sasol Financing also maintains suffi cient  short-term credit lines with a number  of relationship banks for general  treasury purposes.  Due to the cash-conservation approach  adopted by management in the volatile  economic climate, Sasol maintained solid  cash balances on a strong, deleveraged  balance sheet. The group continued to  generate considerable cash flows in the  year, ensuring that it remained in a  favourable position to fund its growth  programme and meet all debt service  requirements. It also allowed for the  adoption of a progressive dividend policy. In the final quarter of 2010, BNP Paribas  was appointed as the project fi nancial  adviser to assist with the funding of Sasol  Synfuels International’s Uzbekistan  joint-venture GTL opportunity. This is an  important mandate. Sasol, along with its  partners, Uzbekneftegaz and Petronas, aim  to secure approximately 70% project debt.  Project financing is new to Uzbekistan,  a landlocked country where the primary  funding risks relate to logistics and the  political environment. To mitigate these  risks, correct lender selection is imperative.  We believe export credit agencies and  development finance institutions will play  an important role in securing the most  competitive and appropriate fi nancing  for this opportunity.  Sasol Financing, the group executive  committee and the Sasol board of  directors review the use of oil price hedges  as a part of risk management. Although  Sasol Financing has assisted in the past  five years in arranging a hedge on 30% of  Sasol Synfuels’ production, Sasol did not  enter into a strategic oil hedge in 2010.  Given that our balance sheet was strong  and effective cost-cutting measures had  been implemented early in the global  economic crisis, hedging at the levels  available in the market were not  considered to be appropriate. We will  continue to review hedging opportunities  in the year ahead. Eurobond matured and was repaid. With  a coupon rate of 3,375% per annum, the  bond provided an attractive funding rate  throughout its lifetime. It also raised  Sasol’s credit profile in the international  capital market. requirements for new growth  opportunities. We work to secure the most  appropriate financing structure in terms  of cost, size and risk sharing.  Sasol Financing is responsible for the  group’s central treasury, ensuring that  Sasol can meet its funding requirements  and expansion objectives in time and as  cost-effectively as possible, while keeping  financial risks to a minimum. We had  another busy and successful year in 2010.