The Export-Import Bank of the United States (US Exim) is set to insure US$400mn in revolving credit facilities for Trafigura, the latest export credit agency-backed deal for the global commodity trader.

US Exim has notified Congress it intends to provide two financial institution buyer credit policies to Citibank and Crédit Agricole for two short-term facilities being extended to Trafigura.

“These policies will provide coverage of a self-liquidating line of credit to enable Trafigura Ltd to purchase liquefied natural gas from US exporters to sell primarily to European buyers, who are seeking to replace Russian gas following the outbreak of the war in Ukraine and subsequent sanctions,” a US Exim official tells GTR. The policies cover default and political risks.

After the congressional notice period expires, the deals will go back to US Exim’s board of directors for final approval. Congressional notification is required for all deals US Exim is considering with a value of more than US$100mn.

Since last year, Trafigura has secured insurance from ECAs in Italy and Germany, for imports of strategic metals and LNG, respectively. It has also received a US$125mn loan from the Abu Dhabi Exports Office.