Commodity trader Gunvor has refinanced a ¥49.1bn (US$337mn) three-year Samurai term loan, which is being linked to the company’s sustainability targets for the first time.  

Sixteen banks joined the syndication, which the trader says was “significantly oversubscribed”, helping boost the loan from its 2021 value of ¥27bn.   

Mizuho, MUFG and SMBC were joint active bookrunners and mandated lead arrangers for the facility. Mizuho also acted as roadshow co-ordinator, MUFG as documentation and facility agent and SMBC as the sustainability co-ordinator.  

China Construction Bank and Gunma Bank also acted as mandated lead arrangers. A Gunvor spokesperson says a further 11 lenders participated in the deal, but declined to name them.  

“We are very pleased with the outcome of our Samurai loan refinancing and the support we received from our Japanese financial partners,” says Jeff Webster, the trader’s chief financial officer. “The increase in the facility affirms the market’s clear support for Gunvor’s strategy and our ESG commitments, which are now embedded in this transaction.” 

The four sustainability targets Gunvor must meet to qualify for a discount on borrowing costs are reductions in the company’s direct greenhouse gas emissions, trimming emissions from its shipping activity, investing in non-fossil fuel projects and conducting a human rights assessment of its assets, joint ventures and suppliers by 2025. 

Gunvor’s European and Asian revolving credit facilities, signed this year, are linked to the same targets.