Trafigura has raised US$3.2bn in term loans and a revolving credit facility (RCF) from 38 banks across Asia and the Middle East, upsized from the equivalent facility secured last year.

The global commodity trader says the financing consists of a one-year US$705mn RCF, a one-year US$1.29bn CNH term loan and a three-year US$1.24bn term loan.

All three deals were slightly larger than the equivalent facilities concluded in October 2023, amounting to around US$600mn in extra borrowing, Trafigura says, noting the transaction was “substantially oversubscribed” from its US$2bn launch.

Bank of Communications, China Construction Bank, China Everbright Bank, DBS, First Abu Dhabi Bank (FAB), ICBC, OCBC and Standard Chartered are the mandated lead arrangers and bookrunners of the overall transaction.

The Export-Import Bank of China and China Merchants Bank are the mandated lead arrangers and bookrunners for the CNH syndication of the facilities.

The company said the package attracted five new banks, but a spokesperson declined to name them.

Trafigura says the proceeds will be used to refinance a maturing three-year term loan tranche from 2021, and for general corporate purposes.

“We have successfully refinanced our unsecured syndicated facilities with more than US$600mn in additional liquidity and a number of new lenders,” says Trafigura’s recently installed group chief financial officer Stephan Jansma.

“Once again we appreciate the strong support we received from banking markets across Asia Pacific and the Middle East, with particularly strong support from Chinese banks. Our funding position leaves us very well prepared to serve our customers in all market conditions.”

Like most large commodity traders, Trafigura was buoyed by the price swings of widely traded raw materials in 2021 and 2022 as the global economy surged back from the Covid-19 pandemic, leaving many traders with large cash piles.

Like last year, the facilities are structured to give Trafigura a discount on borrowing costs if the company meets a number of sustainability metrics.

The targets are cutting operational scope 1 and scope 2 greenhouse gas emissions; the growth of the company’s renewable power portfolio; and implementation of the Voluntary Principles on Security and Human Rights across Trafigura’s operations.

FAB and Standard Chartered are sustainability co-ordinators for the financing package.