Global commodities trader Mercuria has launched an Asia Pacific energy transition borrowing base facility worth US$175mn, in partnership with trade finance platform Komgo.

The deal, which Mercuria says was oversubscribed, involves five syndicate members from a panel of European and Asian banks. The names of the banks were not disclosed.

Speaking to GTR, Anthony Ford, Mercuria’s Asia chief financial officer and group head of credit, says that proceeds from the facility will be used to support the company’s carbon certificate trading activities.

Komgo, a consortium which counts Mercuria among its founding shareholders, acted as digital agent for the transaction. Using Komgo’s smart document solution, Trakk, Mercuria says participants in the deal were able to securely share information, removing the need for wet ink signatures and enabling paperless transactional drawdowns, mark-to-marketing, verification of signers and processing of collateral in a digital format.

Mercuria adds that Trakk’s utility as a one-stop, verifiable source for all syndicate members builds trust through detailed monitoring, as well as increasing the efficiency of the overall facility.

“We’re delighted to have collaborated with Komgo on its first digital agent deployment in the Asia Pacific region, demonstrating our commitment to innovation and digitalisation in the trade finance industry,” says Ford.

The facility is the latest of several involving Komgo. This week, Gunvor Singapore announced that the fintech came in as digital agent on its US$600mn borrowing base facility in support of its Asian oil business, which is using Komgo’s solutions to monitor inventory, receivables, liabilities and hedging, as well as for digital reporting.

Previously, Swiss coffee trading house Sucafina used Komgo in 2021 for digitised trade documentation and stock monitoring as part of a US$500mn two-year revolving credit facility through 16 banks. This was followed by Komgo’s participation as digital agent in energy trader BB Energy’s inaugural US$500mn US borrowing base facility.