Global commodities trader BB Energy has renewed and extended its US borrowing base facility in a bid to bolster its inventory and receivables needs in the Americas region.

The credit facility was initially launched at US$500mn and closed at US$600mn. It can be increased by an additional US$200mn via an accordion feature.

The agreement renews BB Energy’s first US borrowing base deal – signed two years ago – and is once again a digital facility that will use Swiss trade finance fintech Komgo’s platform, the trader says.

ING Capital acted as arranger and bookrunner on the syndication and is serving as administrative agent, while Citi is cash management bank.

A total of 11 banks, including returning lenders Crédit Agricole, HSBC, Garanti Bank International, Natixis, Société Générale, UBS and Wells Fargo joined the facility, while Deutsche Bank and MUFG are new financiers on the agreement.

“The entry of new lenders and the resulting large oversubscription is a testament to the maturity of BB Energy’s operations in the Americas,” says Cauê Todeschini, head of trade and commodity finance  Americas at ING.

In July, BB Energy closed an oversubscribed revolving credit facility worth US$350mn with a pool of 27 banks, the proceeds of which are refinancing a maturing facility and for general corporate purposes.

BB Energy, headquartered in the UAE, was founded by Lebanon’s Bassatne family in the 1960s and primarily trades crude, refined oil products, liquefied natural gas and liquefied petroleum gas. In 2022, it traded 31 million tonnes of crude and petroleum products and gas, resulting in a turnover of US$24bn.

Through its Houston office, BB Energy trades energy products both within the US as well as Central and South America.