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Trafigura launches US$4.5bn revolver

Europe / 24-01-18 / by
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Commodity trader Trafigura has launched a US$4.5bn revolving credit facility (RCF) to refinance existing European debt facilities.

The new RCF will replace two multi-currency RCFs signed in March of 2016 and 2017.

ING, NatWest, Standard Chartered and UniCredit are active mandated lead arrangers (MLAs) and bookrunners for the deal, with Bank of China and Société Générale serving as passive MLAs and bookrunners. It’s likely that the new revolver will have a three-year tenor.

Trafigura continues to visit the debt markets with frequency. The pre-existing debt that is being refinanced attracted a remarkable 45 banks to the syndicate when signed in 2016.

In addition to this, the bank has outstanding facilities around the world. In October 2017, it closed two RCFs worth a total US$1.99bn in Singapore, which included a syndicated renminbi tranche for the fifth year in a row.

Mid-2016, it closed a US$3bn borrowing base facility for its North American operations. This was a refinancing package downsized from the original US$3.5bn, but which the trading house says was significantly oversubscribed.

And late last year, Trafigura launched an innovative funding programme which combines receivables finance, structured commodity finance, asset finance, supply chain finance and securitisation.

The US$470mn non-recourse funding programme was arranged by BTMU, DBS, Mizuho, Natixis, OCBC and Westpac, in what the participants claim is the first of its kind.

Trafigura Commodities Funding (TCF, as the programme is known) issued US$470mn of notes which were placed on a private basis with the banks involved. The proceeds of these notes, along with a loan from Trafigura, will be used by TCF to buy crude oil and refined metals.

It is believed that the asset programme will be sold as a rated asset on the capital markets. This will enable Trafigura to diversify its funding channels.

It is expected that the latest RCF to be launched will closed by mid-March.

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