Commodity trader Gunvor Singapore has launched a US$750mn syndicated revolving credit facility (RCF) to support its Asian operations.
Bookrunning mandated lead arrangers (BMLAs) on the deal are DBS, First Gulf Bank, ING, Malayan Banking Berhad and Rabobank. Active bookrunners are DBS, First Gulf Bank, ING, OCBC and Rabobank.
Senior MLAs on the transaction are ABN Amro, Crédit Agricole, CTBC Bank and Société Générale, while ICICI Bank of India is an MLA.
The finance will be used to refinance an existing RCF from 2015, as well as providing working capital requirements. There are two tranches, with tenors of 364 days and three years.
Despite the downturn in commodities markets, Gunvor has been able to raise capital throughout the world on a regular basis. In November 2015, it raised US$1.36bn in RCFs, also to replace existing debt.
In July of the same year, it increased its RCF from US$911.7mn to US$1.06bn. This facility had been previously oversubscribed and marked up from US$500mn. In the same month, it increased its Middle Eastern borrowing base to US$525mn – a rise of US$105mn.
While rivals such as Glencore, who are largely diversified, have reported financial decline in correlation with the falling prices of many key commodities, Gunvor last month announced record profits. It made US$1.25bn last year, after selling much of its Russian asset and increasing the volumes of oil traded.
“It is a credit to the company’s broadening management structure that Gunvor has emerged stronger over the past year, despite the challenges we’ve faced. We’ve seen an increase in volumes, an increase in earnings from trading, and continued geographic diversification. We’re very well positioned to operate in current market conditions,” Gunvor group CEO Torbjörn Törnqvist said in a statement accompanying the results.