Commodity trader Tong Teik, a subsidiary of RCMA Group, has secured a US$360mn multi-currency one-year syndicated borrowing base facility.
Jointly led by ANZ and Standard Chartered (SCB), the other mandated lead arrangers are ABN Amro, Rabobank, ING Bank. Société Générale and DBS Bank also participate as lead arrangers.
The facility will finance the business’s working capital requirements in Europe, aggregating the group’s European and Asian lines into one facility. It covers multiple asset classes, multiple commodities and a large geographical area covered by multiple legal entities across Europe and Asia. The result is a complex asset-based deal with an innovative structure.
The facility can be drawn in US dollar or euro and consists of a secured borrowing base tranche and an unsecured working capital tranche. It includes a renewal option, allowing the revolver to be extended for a further 12 months prior to its maturity.
Head of agribusiness for ANZ Singapore Samuel Reboul comments on the financing: “We are pleased to support Tong Teik in its inaugural Asia and Europe borrowing base facility. ANZ’s super regional capabilities and our deep understanding of Tong Teik’s operations have allowed us, in conjunction with SCB, to tailor a unique structured trade finance solution well adapted to our client’s funding requirements across Asia and Europe.”
Global head of the solutions structuring team, transaction banking for Standard Chartered, Samuel Mathew says: “Tong Teik, and the wider RCMA Group, is an exciting trading house with a great deal of potential. We are delighted to have worked with them and ANZ to structure and execute this market leading facility for the group.”
Headquartered in Singapore, RCMA Group trades and distributes such commodities as rubber, coffee, sugar and cotton. It operates throughout Asia, Europe and the Americas.
RCMA Group CEO Christopher Pardey says: “We are extremely pleased with this successful outcome and would like to thank our lenders for making this happen. This facility enables us to bring our business to the next level of growth.”