Mercuria Energy Trading has signed a US$1bn revolving credit facility (RCF).

The RCF has been raised from Middle Eastern and Asian banks and was oversubscribed, launching at US$800mn and receiving US$1.23bn in commitments.

The facility is broken down into three RCFs: two one-year revolving tranches of US$430mn, which includes a swingline option (where a lender gives the borrower the option of an immediate short term loan at a higher interest rate than agreed for the RCF), and US$100mn, which can be drawn in US dollars and renminbi, and a three-year US$470mn tranche.

The mandated lead arrangers and bookrunners for the deal were: ANZ, Bank of China, BTMU, BNP Paribas, DBS, Emirates, First Gulf, HSBC, ICBC, ING, Rabobank, RBS, Société Générale, Standard Chartered and SMBC. In total, 47 banks were involved.

Mercuria Energy CFO, Guillaume Vermersch, comments: “Once again, this facility has been massively oversubscribed. This is a very strong signal sent by the Middle East and Asian banking communities valuing Mercuria’s trading strategy now fully-diversified across energy, metals and mining and continuously growing in these regions.”

The loans will be used to refinance existing debt and to finance the working capital requirements of Mercuria and its Asian operations and are unconditionally guaranteed by the company.

This is the fourth such funding that Mercuria has raised in Asia, with the two most recent facilities also being largely oversubscribed.