Trader Gunvor Group has renewed a lending facility that will give it access to $1.565bn to fund its expanding worldwide LNG activities.
The company said the syndication was launched at $1.2bn and was oversubscribed. Six new banks joined and the facility was increased from $1.135bn to $1.565bn.
Gunvor said it had “strong appetite” from new lenders, including more than 20 banks from Europe, the Middle East, Africa, and Asia.
Under the new facility Gunvor has committed to CO2 carbon emissions reporting to establish transparency for the carbon footprint of the company’s LNG value chain, the trader said.
Gunvor has previously committed to a 40% reduction target in the company’s Scope 1 and 2 emissions by 2025.
The lending facility, which was inaugurated in 2021, has been structured around Gunvor’s global LNG trade flows, including shipping activities, and will finance physical and derivative positions, the trader said.
Gunvor head of structured trade finance Tawfik Sadfi said: “The very strong interest this financing has received from such a diversified pool of lenders reflects the global nature of Gunvor’s LNG activity.
“LNG has secured a place as strategic commodity for both the energy transition and energy security,” Sadfi added.
Rabobank Trade & Commodity Finance — Energy director Gertjan Lagerwerf said: “The successful refinancing and increase of this facility underscores the extent to which a growing number of banks recognise LNG as part of the mainstream commodities market.
“LNG has an important role in assuring energy security for many countries amid the current challenging geopolitical circumstances.”
Societe Generale global head of trade commodity finance Ludivine Labarre said the LNG borrowing base facility “embodies the long-term strategic move of Gunvor to support LNG transitional commodities contributing to both low-carbon future and energy security”.
He said: “Gunvor’s clearly defined trading strategy and business model, hand-in-hand with its sustainability commitments, continue to attract market confidence while paving the way for new ESG commitments linked to LNG activity.”
Cooperative Rabobank acted as the lead coordinator, facility and security agent and Societe Generale as documentary agent of the facility.
