Swiss trader Gunvor Group has fixed new financing tied to the emissions of its shipping fleet.
The major charterer of tankers and gas carriers said the $2.265bn sustainability-linked transaction was substantially upsized from 2023.
The multi-currency revolving credit facility was split into two tranches.
The first is a $1.775bn one-year revolver with options for another three years.
The second is worth $490m over three years, with a one-year extension.
“Thanks to strong support from existing and new banking partners, the facility ended up substantially upsized versus last year. Additional liquidity was successfully raised in both tranches,” Gunvor said.
The cash will go towards general corporate purposes, including the refinancing of the existing $1.54bn and $280m facilities from last year.
Gunvor said the new deal comes with a “comprehensive” set of ESG-linked targets.
The group’s Scope 1 and 2 greenhouse gas emissions must be cut, as must Scope 3 emissions, to “improve the energy efficiency of the shipping fleet”.
The trader will also be measured by its investment in non-fossil fuel projects.
Strong support from lenders
Chief financial officer Jeff Webster said: “We are pleased to see growing support from our financing partners and to onboard new lenders in the group’s flagship facility.
“The increase in commitments demonstrates the strong relationship the company has with its banking group and its support of our growth strategy.”
Lenders include Arab Petroleum Investments Corp, Credit Agricole, ING, UBS and Societe Generale.
Citibank, Erste Group Bank and KfW IPEX-Bank were among the lead arrangers.
Earlier this month, Gunvor said it had closed its first-ever private placement of bonds in the US.
It said the financing deal was worth $378.5m.
The sale of senior unsecured notes to institutional investors was “significantly over-subscribed”. The transaction was launched at only $100m.
Tranches mature over three, five, seven, 10 and 12 years.
