Gunvor Group has signed an oversubscribed revolving credit facility (RCF) worth US$1.69bn to replace maturing debt tranches. The funds will be used by Gunvor International and Gunvor SA to finance general corporate purposes and working capital requirements.
Initially launched at US$1bn, the facility will amend and extend the A and B tranches of Gunvor’s European revolving credit facility, consisting of the US$1.68bn facility it signed in November 2018 and tranche B of the US$250mn facility it signed in November 2017.
Bookrunning mandated lead arrangers were ABN Amro, Rabobank, Crédit Agricole Corporate & Investment Bank, Credit Suisse, DBS, ING, Natixis, Société Générale, UBS and UniCredit.
ABN Amro, Rabobank, ING, Natixis and Société Générale acted as active bookrunners while Credit Suisse came in as facility and swingline agent.
Joining as senior mandated lead arrangers were Emirates NBD and China Construction Bank, while DZ Bank, Nedbank and KfW-Ipex Bank joined as mandated lead arrangers.
Mizuho, Citigroup, Apicorp, Sumitomo Mitsui Trust Bank, Commerzbank, MUFG and SMBC joined as lead arrangers, and Mashreqbank, Raiffeisen, Arab Bank, Bank ABC, Banque de Commerce et de Placements, Erste Bank, Garanti Bank International, Habib Bank and ICBC joined as arrangers.
Goldman Sachs and UBAF joined as participants on the deal.
“Gunvor has undergone a significant overhaul during the last year, revising governance, our approach to risk, and investing considerably into our trading teams,” says Gunvor Group CFO Muriel Schwab. “The backing of our banking partners has been essential to this process, and the clear support we’ve received further validates our strategy going forward.”
The group maintains about US$20bn in financing lines, with main facilities including Gunvor USA’s US$1.1bn borrowing base. Recently, it diversified its financing into sustainability-linked facilities, in a move which it calls a first for the physical energy trading industry.