Trafigura Group’s Singapore division has sealed a bigger-than-expected financing deal in uncertain times for commodities and shipping.
The trader and shipowner said a series of new syndicated revolving credit facility and term loans were arranged worth $3.2bn.
“The facilities were substantially oversubscribed and upsized from their initial launch amount of $2bn-equivalent, with 38 financial institutions participating in the transaction, including five new lenders,” it added.
The refinancing consists of a one-year revolver worth $705m; a one-year Chinese yuan term loan facility of $1.3bn; and a three-year term loan facility of $1.2bn.
The cash will pay off a three-year term tranche fixed in 2021, plus corresponding one-year deals in US dollars and Chinese yuan from 2023, as well as being used for general corporate purposes.
Chief financial officer Stephan Jansma said: “Our funding position leaves us very well prepared to serve our customers in all market conditions.
“We have successfully refinanced our unsecured syndicated facilities with more than $600m in additional liquidity and a number of new lenders.
“Once again we appreciate the strong support we received from banking markets across Asia Pacific and the Middle East, with particularly strong support from Chinese banks.”
The borrowings have been structured as sustainability-linked loans.
A penalty or discount on the interest margin will be applied, depending on the number of environmental targets met each year.
Chinese lenders Bank of Communications, Industrial & Commercial Bank of China, China Construction Bank and China Everbright Bank chipped in with money.
New boss incoming
DBS Bank, First Abu Dhabi Bank, Oversea-Chinese Banking Corp and Standard Chartered Bank were also involved.
The Export-Import Bank of China and China Merchants Bank were the mandated lead arrangers and bookrunners in connection with the yuan syndication.
Last week, Trafigura promoted Richard Holtum as its new chief executive.
The commodities trading giant announced that Holtum will take the reins at the company, which is also a major charterer, in the new year, confirming reports in April that he was being prepped for the top job.
He takes over from Jeremy Weir, who will become chairman.
