Trafigura has closed syndicated European revolving credit facilities (RCFs) totalling more than US$5.6bn, which the commodity trader says will strengthen its ability to respond to market turbulence and volatility. 

The Singapore-headquartered trader announced today it had extended an existing three-year facility, initially launched in March 2022, by a further year, while also increasing its value by US$65mn to US$3.7bn. 

It has also agreed a one-year RCF totalling US$1.9bn. The facility was launched at US$1.5bn but was “substantially oversubscribed”. Across both facilities, commitments have increased by US$70mn since last year, now totalling US$5.63bn. 

Trafigura’s chief financial officer, Stephan Jansma, says the refinancing reflects the “strong and ongoing support of our global banking community”. 

“The European revolving credit facility remains a cornerstone of our funding strategy, ensuring sustained access to capital and reinforcing our robust liquidity position,” he says.  

“Following this refinancing and extension, we are well prepared to navigate potential market disruptions and volatility.” 

A total of 55 banks have joined as participants across both facilities.  

For the one-year RCF, Bank of China’s London branch, ING Bank, SMBC, Société Générale and UniCredit participate as active mandated lead arrangers and bookrunners (MLABs), with Rabobank and UBS joining as passive MLABs. ING also acted as global coordinator. 

Trafigura has not named the 48 financial institution participants in the three-year RCF. 

The announcement follows September’s announcement that the trader had raised US$3.2bn from banks across Asia and the Middle East comprising an RCF as well as term loans, and the renewal in June of its North America borrowing base facility worth more than US$4.5bn. 

And in January, Trafigura secured a first-of-its-kind US$1bn syndicated facility helping it discount receivables on an off-balance sheet basis.