Energy and commodities trader Mercuria has closed a one-year secured borrowing base facility for its North American operations.

The US$3.4bn facility will be used by the trader for general corporate purposes and working capital needs, and renews a US$3bn facility agreed in November last year.

It was launched on August 14 with general syndication beginning on September 17, and experienced “significant oversubscription”, Mercuria says.

“The successful refinancing of our North American borrowing base secures greater liquidity and flexibility for the group as we advance our commodities footprint and energy transition goals,” says Guillaume Vermersch, Mercuria’s group chief finance officer (CFO).

“This strong oversubscription by our bank partners speaks to their confidence in our proven business model and forward-looking vision.”

Crédit Agricole CIB, ING Capital, Mizuho Bank, MUFG, Natixis’ New York branch, Rabobank’s New York branch, SMBC and Société Générale serve as joint lead arrangers (JLAs). Société Générale additionally acts as the administrative agent.

“With the refinancing of our borrowing base facility, we are positioned to accelerate growth in the North American market, advancing our strategic business initiatives,” says Bin Wang, Mercuria’s North America CFO.

“This year’s refinancing demonstrates the continued strong support from new and existing banking partners. 23 banks committed to the facility, including a large group of top-level JLAs and the new addition of global and regional banks.”

The trader did not name the other participating banks when asked by GTR.

The facility follows Mercuria’s announcement at the start of the month that it closed a set of loans and facilities worth US$1.7bn in Asia that was 90% oversubscribed.

These deals continue a trend of commodity traders securing large syndicated working capital facilities from lenders.