- The commodity trader has renewed and expanded a previous RCFs deal with the US export credit agency
- The announcement comes after Trafigura and US Exim’s relationship came under scrutiny last year
Trafigura has renewed and expanded two revolving credit facilities backed by the Export-Import Bank of the US (US Exim) to support energy exports to Europe, Asia and South America.
The deal renews facilities totalling US$400mn agreed in 2023, and expands the scope of eligible products beyond LNG, also covering crude oil, refined petroleum and petrochemicals.
The proceeds will be used to purchase energy products from US producers and export them, with coverage now expanded to additional destination countries, Trafigura says.
James Murphy-O’Connor, Trafigura’s head of ECA finance, says: “These expanded US Exim-backed facilities demonstrate our continued commitment to facilitating American energy exports.
“By connecting US producers with key international markets, we’re supporting both American energy sector growth and global energy security through reliable, diversified supply chains.”
Last year, US Exim and Trafigura’s relationship came under scrutiny by the agency’s inspector general – an independent body led by a presidential appointee tasked with preventing and detecting fraud, waste and abuse by US Exim – over potential fraud risks.
The US Exim’s Office of Inspector General suggested at the time it would enhance scrutiny of the export credit agency’s due diligence processes.
The warnings followed US Exim’s decision to approve two insurance policies involving Trafigura, despite being alerted that the commodities giant was being investigated by Brazilian law enforcement over potential corruption claims.
The watchdog claimed the US Exim appeared to “not act on fraud-related information” when it signed the deals.
Singapore-based commodities trader Trafigura has since reached a US$76mn settlement with Brazilian authorities to resolve the investigation into a years-long scheme involving officials at state energy company Petrobras.
The latest RCFs renewal announcement follows approval by the US Exim board of directors – now led by Donald Trump’s pick, John Jovanovic – of two Financial Institution Buyer Credit (FIBC) policies issued to participating financial institutions for short-term facilities being extended to Trafigura.
