Trafigura has refinanced its multi-currency European syndicated revolving credit facilities (RCFs) for a total of US$5.6bn, helping the company maintain liquidity at “record levels” amid heightened market uncertainty.

A 365-day facility was initially launched at US$1.5bn but closed at US$1.9bn, and will be used for general corporate purposes. It replaces a maturing European RCF from last March, the firm says.

Trafigura has also exercised a second 365-day extension option on its 3-year European RCF to maintain the existing tenor, growing the size of the tranche by US$160mn to a total of US$3.7bn.

“The successful renewal of our flagship European revolving credit facility, which is a key pillar of our funding model, is a vote of confidence from our banking partners,” says Trafigura’s CFO Christophe Salmon.

“We are maintaining the company’s liquidity at record levels following this refinancing and extension process. As a result, Trafigura is well positioned to manage potential bouts of volatility, as commodity markets remain uncertain in the near-term.”

54 banks joined the latest European RCFs, which were once again structured as sustainability-linked loans, three years after the trader signed its first such transaction in early 2021.

As in previous years, a penalty or discount on the margin is applied based on Trafigura’s performance against certain metrics.

The firm is evaluated annually, and under the latest RCF package will be judged against three targets: its ability to cut 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.

From 2026, reducing the carbon intensity of Trafigura’s shipping will also be included as a target. A Trafigura spokesperson confirms this will include scope 3 emissions caused by vessels it charters and does not own, the first time an aspect of the firm’s scope 3 emissions has been included in one of its sustainability-linked facilities.

Seven banks arranged the 365-day European RCF including Bank of China, ING, SMBC, Société Générale and UniCredit, which act as mandated lead arrangers and bookrunners (MLABs), as well as Rabobank, a passive MLAB.

Société Générale is global coordinator, while SMBC and Natixis serve as sustainability coordinators.