Gunvor’s US division has expanded its uncommitted borrowing base facility to US$1.6bn with support from 18 lenders, despite what executives describe as a “challenging” market environment. 

The deal builds on an oversubscribed US$1.45bn facility agreed by the oil trading giant in October last year. This year’s facility consists of a US$1.28bn one-year tranche, a US$320mn two-year tranche and a US$500mn accordion feature. 

The funds will support working capital financing for trading activities as well as general corporate purposes, Gunvor USA says. 

As with last year’s facility, Rabobank and Société Générale are joint lead arrangers and active bookrunners, with the Dutch lender serving as administrative agent, co-ordinator and left lead. 

ING Capital again participates as joint lead arranger as well as passive bookrunner. Fellow joint lead arrangers Natixis, MUFG and Crédit Agricole CIB – not named as a participant last year – also take on co-syndication duties. 

SMBC, Citibank and Industrial and Commercial Bank of China act as co-documentation agents. The other nine lenders are not named by Gunvor. 

Gunvor USA managing director David Garza hails the deal as a demonstration of the company’s resilience “during times of market stress”. 

Thomas Smith, regional chief financial officer for the Americas, adds: “Despite a challenging credit market, the facility benefitted from the strong support of our 18 new and existing lenders, being oversubscribed in syndication and subsequently increased to US$1.6bn.” 

Smith adds Gunvor’s banking partners “remain supportive of the company’s strategy for continued participation in traditional energy markets while pursuing its energy transition goals”. 

The facility is the latest of several syndicated deals secured by the trader in recent months. In July, Geneva-headquartered Gunvor significantly expanded the size of its revolving credit facility for the issuance of off-balance sheet instruments, attracting 30 participants to a transaction totalling US$1.37bn. 

The same month, its Singapore entity closed a US$1.12bn revolving credit facility backed by 26 lenders, just two months after securing a US$600mn borrowing base facility in support of its oil business in the region.