Deutsche Bank has extended a structured commodity refinancing package to Italian steel company Travi e Profilati di Pallanzeno (TPP).

Deutsche was the mandated lead arranger, sole bookrunner, facility and security agent and sole lender of the €122.5mn facility. However, the bank has since syndicated the debt to the market. The structure of the syndicate is confidential.

The loan has a margin of Euribor plus 2.25% and a three-year tenor. It is secured by the assets of the borrower, part of the Duferco group, in the sort of borrowing base secured transaction that Sander Stuijt, Emea head of structured commodity trade finance origination and structuring, tells GTR will become more common.

He explains: “In Italy, the borrowing base structure is a weapon of choice for commodity processing companies to finance their entire working capital. It provides protection to the lenders and the flexibility and liquidity that’s required to the borrower. We have a number of these facilities and they work out in good times and bad. I think we’ll see more of them. “

Given that both the Italian and steel markets are struggling; Stuijt says the bank is pleased to have been able to “increase the facility amount and extend the tenor for another three years. It shows that this business is resilient”.