Eastern European trader TOI Commodities has refinanced and upsized its borrowing base facility to US$295mn, securing commitments from 16 commercial banks and development lenders.
The trader, formerly known as Transoil, will use the proceeds to originate and export agricultural commodities from the Black Sea region and ship them via the Danube waterways between Moldova and Romania.
According to the firm, there are pledges of future commitments that may eventually boost the facility’s size to US$325mn.
“This enhanced financing will enable TOI Commodities to strengthen its operations and further contribute to the region’s agricultural trade flows,” the trader of grain and sunflower seeds says in a July statement.
The deal is an increase from last year’s US$177.5mn facility and includes an additional four borrowers.
It includes a one-year tranche with the option of an additional year, and a two-year tranche with a one-year extension option.
“General syndication commenced on 17 April, with approximately 20 lenders invited to participate in the US$270mn borrowing base facility. Though initially considered ambitious by the market, this fundraising target exceeded expectations, resulting in a near doubling of the facility size,” the trader adds.
ING led the transaction as the sole arranger and acts as the facility agent, security and documentation agent.
There are several new commercial bank partners, including The Access Bank’s London and Malta branches, Anadolu Bank, BIC-Bred Geneva and Nexent Bank (formerly Credit Europe).
They join Citi, Fimbank, two OTP Bank entities, Rabobank, Raiffeisen Bank International and UniCredit, as well as three development institutions: the Netherlands’ FMO and the Black Sea Trade and Development Bank, alongside the World Bank’s International Finance Corporation.
“In today’s fractured geopolitical environment, closing a funding deal requires building investor confidence through transparent governance, adaptive financing structure and tangible safeguards across the supply chain,” says Vaja Jhashi, chairman of the board at Transoil Group.
“This upsized facility provides the bedrock for the group to pursue its commercial expansion and development on a regional scale,” he adds.
