Gunvor Singapore has closed a heavily oversubscribed US$830mn revolving credit facility from a syndicate of 25 banks, which will be used for general corporate and working capital needs.
The facility was initially launched in April at US$450mn, but was oversubscribed by around 85%, says Gunvor Singapore – a wholly-owned subsidiary of Swiss commodity trading giant Gunvor Group.
The deal refinances an existing US$450mn revolving credit facility from June last year. It provides a 364-day revolving credit facility with an option to extend for up to 12 months.
“Our banking partners have demonstrated clear confidence in Gunvor’s strategy and business model as we navigate the continued tumult of the commodities markets,” says Jean Rohr, regional CFO for Gunvor Singapore. “Our liquidity and funding model prove to be very resilient in volatile market conditions.”
DBS Bank, Natixis’s Singapore branch and OCBC Bank are active bookrunning mandated lead arrangers (MLAs), with the Singapore branches of Emirates NBD Bank and ING Bank acting as bookrunning MLAs.
Rabobank, Arab Petroleum Investments Corporation, China CITIC Bank, Mizuho Bank, National Bank of Fujairah and Société Générale also join as MLAs.
Abu Dhabi Commercial Bank and First Abu Dhabi Bank have joined the facility as lead arrangers, along with the Singapore branches of MUFG Bank and SMBC.
The other arrangers are Sumitomo Mitsui Trust Bank, Banque Internationale de Commerce, United Overseas Bank, Attijariwafa Bank Europe, Commerzbank and Taichung Commercial Bank, in some cases through their Singapore branches.
The deal is the latest in a series of oversubscribed financing programmes for Gunvor companies.
The group signed a US$1.23bn revolving credit facility in November last year, to be used for general corporate purposes at Gunvor International and Gunvor SA, and closed a €450mn sustainability-linked borrowing base facility the previous June for its German operations.
The announcement also follows Gunvor reporting its highest-ever trading profit for 2020.
The company recently posted net profits of US$320mn after taxes in its group results for last year, reporting “strong performances across all desks, including crude oil, oil products, LNG and natural gas”.
A collapse in demand caused by the Covid-19 pandemic, along with an increase in oil supply from producers, helped create a highly profitable trading environment throughout the year, Gunvor says.