Supply chain services firm and trader Czarnikow has extended its syndicated borrowing base facility for the second time, closing at US$160mn, US$55mn higher than the previous round.

This round involves 10 banks, including three new participants: Bank of China, the Commonwealth Bank of Australia and the Commercial Bank of Dubai.

The deal follows an initial extension last year, which came 12 months after the facility’s launch in July 2021, and will “fund diversified expansion and help to free up bilateral partners to refocus on Czarnikow’s future plans”, the firm says.

All previously participating banks renewed their commitment to the facility.

Rabobank was co-ordinator, documentation agent and mandated lead arranger (MLA), while Natixis CIB was facility agent, security agent and MLA.

The other banks involved were Banco do Brasil, DZ Bank, GarantiBank International, ING and Société Générale.

Czarnikow says this contribution will support its ongoing strategy to diversify into food and drink ingredients and packaging as it continues its five-year growth plan.

“In 2021, this facility was launched to cover sugar only; this year it covers a range of food and beverage ingredients and packaging products, showing positive progress against our growth strategy,” says Julian Randles, Czarnikow’s chief financial officer.

Czarnikow’s head of structured finance Tanya Epshteyn says the company is “encouraged to see the closing value increase year-on-year to match Czarnikow’s expanding footprint in its product and jurisdictional offering”.

“Czarnikow is a key customer of our agri portfolio, engaged in servicing its customers in a sustainable way and building responsible supply chains, which is also key for Natixis. With new banks on board we are looking forward to further enhancing our facility in the coming years,” adds Natacha Kovshova, head of commodity trade finance, agri at Natixis.

Steven de Vries Reilingh, Rabobank’s head of trade and commodity finance agri for Europe, the Middle East and Africa, says the new facility “caters for a wider spectrum of the goods traded by Czarnikow” and marks “another milestone in the relationship with this valued client”.