Commodity trading giant Trafigura has sealed a massive US$1.95bn debt package, comprised mainly of Asia Pacific lenders.
The facility was oversubscribed and upsized from an initial amount of US$1.5bn, launched in July. In total, 28 lenders participated in the transaction, which was broken into three tranches.
The first is a 365-day revolving credit facility (RCF) worth US$1.075bn, on a three-year tenor. It will refinance a one-year facility from 2017. The mandated lead arrangers (MLAs) and bookrunners on this tranche are ANZ, Bank of China, DBS, ICBC, OCBC and SMBC. MLAs are First Abu Dhabi Bank, UOB and Westpac. Emirates NBD acts as lead arranger, while arrangers are: CBA, Mizuho, NAB, CTBC, Malayan Banking Berhad, Sumitomo Mitsui Trust Bank, KBC, Korean Development Bank, Taichung Commercial Bank, Taiwan Business Bank, Taiwan Co-operative Bank and Union De Banques Arabes Et Françaises
The same banks funded a three-year term loan worth US$500mn. This will refinance a facility from 2015 of the same size.
The third tranche is a one-year Chinese offshore spot (CNH)-denominated term loan facility, worth US$270mn and refinancing a 2017 loan. MLAs and bookrunners are CTBC, ICBC and China Construction Bank. Lead arrangers are Mega International Commercial Bank and Lead Bank of Taiwan. Arrangers are Hua Nan Commercial Bank, Taishin International Bank and Bank of Kaohsiung.
The funds will be used for general corporate purposes. Trafigura’s group financial officer, Christophe Salmon, says that the company was pleased to attract funds from around Asia Pacific and the Middle East.
The company also today (October 10) announced the issuance of a Rmb700mn bond in Mainland China’s debt markets. This is the third issuance of a panda bond by the trader and part of a Rmb2.35bn programme.
Salmon says: “The continued support from the banking community has enabled Trafigura to build its market-leading position. It’s also the sixth consecutive year that we’ve presented a CNH tranche to the syndicated bank loan market and the success of its subscription, alongside our growing panda bond programme, has confirmed Trafigura’s front-rank position among commodity traders in the offshore renminbi centres.”