Swiss trader Gunvor’s Singapore division has clinched a huge new refinancing package with discounts on offer if it cuts vessel emissions.
The sustainability-linked deal is worth $1.32bn, the chartering giant said.
Gunvor had been aiming to raise $750m in April but benefited from strong support from existing lenders, as well as new ones.
The revolving credit facility (RCF) was closed after being “significantly oversubscribed” by more than 60%.
An extra tranche worth $120m was added after the signing, to accommodate two further banks, Gunvor said.
The financing is in place for a year, with two annual extension options.
Cash will go towards general corporate and working capital purposes, including the refinancing of its existing $1.035bn Asian sustainability-linked revolver.
The group will be judged on four decarbonisation criteria.
Direct Scope 1 and 2 emissions must be cut to lower the interest cost, and there will also be a focus on Scope 3 emissions “associated with the improvement of energy efficiency of the shipping fleet”, plus investments in non-fossil fuel projects.
“The successful renewal of our Asian RCF is the result of the deep collaboration between Gunvor and its banking partners," said Jean Rohr, regional finance chief for the Asia-Pacific region.
‘Positive outlook’
“The strong relationship we have with our core financing partners, enhanced by the welcome addition of several new lenders into our upsized anchor facility, demonstrates their support for the group’s strong performance and positive outlook,” he added.
New lead arrangers include Westpac Banking Corp, China CITIC Bank International, Bank of China and China Construction Bank. Other arrangers were Abu Dhabi Commercial Bank, DBS Bank, MUFG Bank and OCBC.
Natixis, State Bank of India, Credit Agricole and ING were also among those involved.
Gunvor saw its 2023 profit hit by its legal settlement of a bribery case in Ecuador and wider economic woes.
Net earnings were $1.25bn, against $2.36bn the year before.
“Gunvor’s trading performance was broad-based, once again across all desks and geographies, with meaningful contributions from the group’s assets, including refining and shipping,” the group said.
